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FxWirePro: GBP/ AUD capped by the 5DMA, good to sell on rally

• GBP/ AUD declined on Monday as   as iron-ore , equity gains & upbeat risk boosted Australian dollar .

• Investors this week will turn their focus towards U.S. inflation data due on Wednesday, followed by ECB rate announcement and press conference on Thursday.

• GBP/ AUD   is probing  support  zone at 1.9494 (50%fib)  , Break lower risks run towards 1.9400 in the short term. 

• Technical signals show the pair could lose more ground in the short-term as RSI has tuned lower , daily momentum studies  5, 9 and 11 DMAs are trending  down.

• Immediate resistance is located at 1.9527(5DMA), any close above will push the pair towards 1.9585(38.2%fib).

• Immediate support is seen at 1.9429 (50%fib) and break below could take the pair towards 1.9372(Lower BB).

Recommendation: Good to sell around 1.9480, with stop loss of 1.9650 and target price of 1.9380
 

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