• GBP/AUD declined on Wednesday as the prospect of a Democrat-controlled U.S. Senate drove capital flows like Australian dollar.
• After trading hitting high at 1.7933 it pushed down to 1.7810,Heading into the US afternoon it was last trading at 1.7824.
• The is pair heading towards 50%fibonacci retracement and later towards lower BB, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 49, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7873 (21 DMA ), any close above will push the pair towards 1.7942 (38.2% fib).
• Strong support is seen at 1.7790 (50%fib) and break below could take the pair towards 1.7753 (Lower BB).
Recommendation: Good to sell around 1.7830, with stop loss of 1.8000 and target price of 1.7750
