FxWirePro: GBP/AUD tests 78.6% Fib at 1.7592, break below to see further weakness

GBP/AUD chart on Trading View used for analysis 

• GBP/AUD trades 1.63% lower on the day, tests 78.6% Fib at 1.7592, bias lower.
   
• Sharp sell off hitting the Sterling triggered by resignations in May’s Cabinet.
   
• Some members of PM May’s Cabinet resigned amidst a generalized opinion against the recently announced draft deal.
   
• UK Retail Sales came in below expectations for the month of October, further denting the pound.
   
• Data released earlier today showed UK retail sales contracted at a monthly 0.5% and expanding 2.2% YoY. Core sales dropped 0.4% m/m and rose at an annualized 2.7%.
   
• On the otherside, stellar Australia jobs data supports Aussie, weighing further on the pair.
   
• Momentum studies are bearish, pair is below cloud and major moving averages.
   
• Break below 78.6% Fib to see further weakness. Scope for test of 1.7282 (Aug 9 lows). Bearish invalidation only above 200-DMA.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.