FxWirePro: GBP/AUD capped below 5-DMA 1.6360, intraday bias lower

• Pound buoyed on Thursday on better-than expected UK retail sales data. The UK’s retail volumes came in at 0.3% in July m/m, beating expectations for 0.2% rise.
   
• GBP/AUD retraced from fresh 5-month lows at 1.6189 to close at 1.6314. 
   
• Bias still bearish, upside remains capped below 5-DMA at 1.6360. 
   
• Momentum studies are bearish, price action has breached triangle base, scope now for test of 1.6040 levels.
   
• RSI weak below 50, Stochs are biased lower and MACD supports downside.

Support levels - 1.6189 (Aug 17 lows), 1.6101 (88.6% Fib), 1.6040 (trendline support)

Resistance levels - 1.6276 (78.6% Fib retrace of 1.5902 to 1.7650 rally), 1.63, 1.6360 (5-DMA), 1.64

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-breaks-major-trendline-support-at-16360-bias-lower-stay-short-for-16040-858096) has hit TP1.

Recommendation: Bias lower, book partial profits at lows, stay short for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -89.8438 (Bearish), while Hourly AUD Spot Index was at 124.014 (Bullish) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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