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FxWirePro: GBP/AUD under pressure after early buying dries up

• GBP/AUD initially gained on Monday  as   but gave up ground  after data showed UK factory activity slows sharply in September.

• UK manufacturing activity slowed sharply in September, though less steeply than the month before when it shrank at the fastest rate in more than three years, a survey showed.

• The is pair heading towards  23.6% fib , as near term direction of the pair is likely to be driven by current price action.  

• Technical are bearish, daily RSI is negative at 34, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.9017 (5 DMA ), any close above will push the pair towards 1.9062 (38.2% fib).

• Strong support is seen at 1.8927 (23.6% fib) and break below could take the pair towards 1.8855 (Sep 29th low).

Recommendation: Good to sell on  around 1.9000, with stop loss of 1.9100 and target price of 1.8900
 

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