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FxWirePro: GBP/AUD attracts selling interest, vulnerable to more downside

• GBP/AUD declined on Tuesday as  fears of a surge in inflation in the UK overshadowed comments by the Bank of England about a possible rate hike.

•Governor Andrew Bailey reiterated on Monday that he and other members of the Monetary Policy Committee saw a growing case to raise interest rates.

• Selling pressure will remain in the short-term, only a move above 1.8811( 38.2 % fib) strong resistance  will shift the bias higher.

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is strongly bearish at 42.

•   Immediate resistance is located at 1.8771 ( 21DMA), any close above will push the pair towards 1.8811( 38.2 % fib).

•  Strong support is seen at 1.9867 (23.6% fib ) and break below could take the pair towards 1.8582 (Lower BB).

Recommendation: Good to sell around 1.8730, with stop loss of 1.8800 and target price of 1.8600

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