• GBP/AUD declined on Tuesday as disappointing UK May CBI data coupled with less-hawkish BoE tones weighed on sterling.
• The drop in retail sales came in stark contrast to recent upbeat UK data releases that showed the UK economic recovery was starting to acquire energy as COVID and Brexit-related development issues decreased.
• The is pair heading towards the 38.2%fib, as near term direction of the pair is likely to be driven by current price action.
• Immediate resistance is located at 1.8537 (9 DMA ), any close above will push the pair towards 1.8665 (23.6% fib).
• Strong support is seen at 1.8188 (38.2%fib) and break below could take the pair towards 1.8128 (14DMA).
Recommendation: Good to sell on around 1.8250, with stop loss of 1.8305 and target price of 1.9150
