FxWirePro: GBP/AUD capped below 5-DMA at 1.9250, stay short for 1.90

GBP/AUD hit fresh 10-month lows at 1.9055 in Friday's trade and is currently trading around 1.9119 on the day.

• Price action has broken below channel base and has dipped below the weekly cloud, momentum indicators converging with price action, downside bias seen.
   
• The sterling outlook remains fragile ahead of the June 23 Brexit referendum, and GBP will likely struggle to advance.
   
• The pair has broken below 38.2% Fib retracement of 1.4381 to 2.23721 rise, and further downside upto 1.8377 50% Fib of 1.4381 to 2.23721 rise cannot be ruled out.
   
• Supports on the downside are aligned at 1.9055/1.90/1.8828, while resistance are seen at 1.9250/1.93230/1.9326.
   
• We had given a short call for the pair (http://www.econotimes.com/FxWirePro-GBP-AUD-edges-higher-from-fresh-10-month-lows-at-19153-test-of-190-levels-likely-172735) which is progressing.
   

Recommendation: Hold for targets