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FxWirePro: GBP/AUD advantage bears but major supports holds, downside risk remains

• GBP/AUD declined on Friday as concerns about the impact of Chinese real estate major Evergrande's debt woes weighed on the pair despite upbeat UK PMI data. •The pair failed to breach a key support at 1.8601 (23.6% fib …

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FxWirePro: GBP/AUD advantage bears but major supports holds, downside risk remains
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• GBP/AUD declined on Friday as concerns about the impact of Chinese real estate major Evergrande's debt woes   weighed on the pair despite upbeat UK PMI data.

•The pair failed to breach a key support  at 1.8601 (23.6% fib ) as investors booked profits.

• Selling pressure will remain in the short-term, only a move above 1.8774 ( 38.2% fib) will shift bias higher.

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is strongly bearish at 37.

• Immediate resistance is located at 1.8694( 38.2%fib), any close above will push the pair towards 1.8755 (10DMA).

• Strong support is seen at 1.8601 (23.6% fib ) and break below could take the pair towards 1.9582 (Lower BB).

Recommendation: Good to sell around 1.8630, with stop loss of 1.8730 and target price of 1.8560.
 

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