• GBP/ AUD initially dipped on Friday but pared some losses as the pair was aided by hot UK retail sales data.
• British retail sales rose by 2.9% in May, rebounding sharply from a revised 1.8% decline in April. Economists' poll had forecast sales volumes would increase by 1.5%.
• GBP/ AUD bulls will find it difficult to pull the pair higher as increasing in focus on July 4th UK election and dovish BoE rate expectations will continue to weigh on GBP/ AUD .
• From a technical viewpoint, RSI is strongly bearish at 40, daily momentum studies, 11, 14 and 21 daily MAs are pointing lower .
• Immediate resistance is located at 1.8964 (38.2% fib), any close above will push the pair towards 1.9123 (50% fib).
• Immediate support is seen at 1.8967 (23.6% fib) and break below could take the pair towards 1.8908 (May 16th low).
Recommendation: Good to sell around 1.9050, with stop loss of 1.9110 and target price of 1.8950
