• GBP/AUD declined on Monday as investors shifted the focus to how Britain’s government will pay for its planned big infrastructure programme .
• Doubts about whether Britain will seal a trade pact with the European Union also pushed the sterling lower against Australian dollar
• The pair is heading towards the lower bollinger band, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 26, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.8006 (Daily high ), any close above will push the pair towards 1.8156 (23.6% fib).
• Strong support is seen at 1.7865 (Lower BB) and break below could take the pair towards 1.7800 (Psychological level).
Recommendation: Good to sell around 1.8000, with stop loss of 1.8150 and target price of 1.7850
