• GBP/AUD declined on Tuesday after data that showed the UK labour market lost more steam in August and business activity deteriorated this month.
• Britain's businesses reported another decline in activity this month and cost pressures cooled further, surveys showed on Tuesday, underlining the risk of recession.
• The flash preliminary reading of the S&P Global UK Purchasing Managers’ Index (PMI) for the services sector fell in October to 49.2 from 49.3 in September.
• The pair dropped to test 1.9128 (50% fib ). A break under would unmask 1.9000 level .
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 46.
•Immediate resistance is located at 1.9238(38.2% fib ) , any close above will push the pair towards 1.9304 (Higher BB).
• Immediate support is seen at 1.9128(50% fib ) and break below could take the pair towards 1.9022(61.8% fib ).
Recommendation: Good to around 1.9130 , with stop loss of 1.9260 and target price of 1.9050
