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

• GBP/AUD declined on Monday  as  investors assessed a U.S.-EU trade deal along with economic data.

• The U.S. and EU reached a trade deal Sunday, setting a 15% tariff on most EU goods and requiring $600 billion in EU investment in the U.S.

• Traders are currently pricing in an 86.5% probability that the Bank of England (BoE) will lower interest rates by 25 basis points at its upcoming policy meeting on August 7.

• The is pair heading towards the lower 23.6% fib fib support, as near term direction of the pair is likely to be driven by current price action.  

• Technical are bearish, daily RSI is negative at 26, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 2.0580(20 DMA ), any close above will push the pair towards 2.0693 (38.2% fib).

• Strong support is seen at 2.0412 (23.6% fib) and break below could take the pair towards 2.0277(Lower BB).

Recommendation: Good to sell on  around 2.0500, with stop loss of 2.0570 and target price of 2.0430