FxWirePro: GBP/AUD bears undeterred, on verge of a bigger drop

• GBP/AUD declined sharply on Monday as talk of negative interest rates from the Bank of England and   Brexit concerns weighed on GBP.

• GBP/AUD remains vulnerable to more downside, only a break and daily close above 23.6% fib at 1.9131 will shift bias to the upside.

• The pair, already trading lower on the day, extended its drop to hit 1.8753, five –months low, it was last down 0.55% on the day.

• Technical signals are strongly bearish as RSI is at 28, daily momentum studies  50 DMA, 5 EMA are trending up. 

• Immediate resistance is located at 1.8878 ( 5 DMA), any close above will push the pair towards 1.8975 ( 9 DMA).

• Strong support is seen at 1.8737 (300 DMA) and break below could take the pair towards 1.8711 (Lower BB).

 Recommendation: Good to sell below 1.8800, with stop loss of 1.9140 and target price of 1.8600.