FxWirePro: GBP/AUD rejected at session highs, eyes 50-DMA at 1.7301, stay short

• GBP/AUD extends weakness for 2nd consecutive week, closes below 5W SMA in the previous week's trade.
   
• Pound remains weak as Brexit negotiations proceed to next stage - regarding trade and the transition period.
   
• Technical studies bearish, RSI sharply lower and gains downside traction below 50 levels.
   
• Momentum studies bearish, MACD supports trend lower. Bearish divergence from price action seen on RSI and Stochs.
   
• 50-DMA at 1.7301 is immediate support. Violation there could see further downside.
   
• Immediate resistance lies at 5-DMA at 1.7506. We see bearish invalidation above 20-DMA at 1.7617.

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-Trade-Idea-1055795) has hit all targets.

Recommendation: Watch out for break below 50-DMA for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -111.692 (Bearish), while Hourly AUD Spot Index was at 105.102 (Bullish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest