- GBP/AUD edges higher from fresh 6-week lows at 1.7210, bias lower.
- The pair has broken major trendline support at 1.7425 and we see scope for further downside.
- Price action has currently held above daily cloud and break below required for further downside.
- Technical studies on weekly charts are biased lower. RSI and stocks have rolled over from overbought levels.
- 20W SMA at 1.7020 is next major support, break below will accentuate weakness.
- Scope then for test of 1.6863 (61.8% Fib retracement of 1.61625 to 1.79966 rally).
Support levels - 1.7236 (cloud top), 1.7020 (20W SMA), 1.6895 (Nov 2 low), 1.6863 (61.8% Fib)
Resistance levels - 1.73, 1.7368 (Nov 1 high), 1.7492 (June 1 high)
Recommendation: Watch out for break below daily cloud to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 75.0951 (Bullish), while Hourly AUD Spot Index was at 66.9135 (Neutral) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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