• GBP/AUD declined on Friday investor appetite to look for returns outside the U.S. currency and higher commodities prices boosted Australian dollar.
• Bears have tightened their grip on this market,A break, daily close under 1.7811(38.2%fib) could deepen losses.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 43 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.7916 ( 50%fib), any close above will push the pair towards 1.7964 (30DMA).
• Strong support is seen at 1.7811(38.2%fib) and break below could take the pair towards 1.7731 (Lower BB).
Recommendation: Good to sell on rallies around 1.7860, with stop loss of 1.7960 and target price of 1.7770.
