- GBP/AUD rejected at highs, slips below to hover around 5-DMA support at 0.6932, bias lower.
- Oscillators are in highly overbought zone which calls for caution, we see weakness on intraday charts.
- We note bearish divergence on RSI and Stochs on 4 hourly charts which raises scope for downside.
- RSI has slipped below 50 levels and is biased lower, MACD also supports trend lower.
- 4H 50-SMA at 1.6869 is immediate support, break below could see drag till 38.2% Fib retracement at 1.6783.
- Immediate resistance is seen at 1.7083 (61.8% Fib retrace of 1.7650 to 1.6162 fall) ahead of 1.7123 (July 7 high).
Support levels - 1.6952 (5-DMA), 1.69, 1.6790 (Sept 21 low), 1.6660 (200-DMA)
Resistance levels - 0.7082 (61.8% Fib retrace of 1.7650 to 1.6162 fall), 1.7110 (Apr 19th high), 1.7123 (July 7 high)
Recommendation: Good to go short on break below 5-DMA at 1.6933, SL: 1.7015, TP: 1.6870/ 1.68/ 1.6785
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