• GBP/AUD declined on Tuesday as better risk sentiment in the market supported Australian dollar broadly.
• The Aussie also gained after the Reserve Bank of Australia recommitted to keeping interest rates at historic lows.
• At GMT 16:55, the pair was trading 0.29% lower at 1.7862. The cross pairs bearish bias is set to strengthen, likely to drop towards 1.7750
• Technical signals are bearish as RSI is at 49, daily momentum studies 5,9,11 DMA’s, are trending down.
• Immediate resistance is located at 1.7936 (100 DMA ), any close above will push the pair towards 1.7992 (50%fib).
• Strong support is seen at 1.7851 (38.2%fib) and break below could take the pair towards 1.7711 (Lower BB).
Recommendation: Good to sell around 1.7870 with stop loss of 1.8000 and target price of 1.7750.
