• GBP/AUD rebounded from early losses on Tuesday as quarter end rebalancing lifted sterling.
• The pair recovered above 1.7950 level, lift stops after finding resistance at 1.7980 (5 DMA).
• Selling pressure will remain in the short-term, only a move above 1.8115 (14 DMA) strong resistance would indicate the weakness in the pair has run out.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 31.
• On the upside, Immediate resistance is located at 1.7980 ( 5 DMA), any close above will push the pair towards 1.8041( 23.6% fib).
• On the downside, strong support is seen at 1.7840 (Lower BB ) and break below could take the pair towards 1.7800 (Psychological level).
Recommendation: Good to sell around at 1.7980, with stop loss of 1.8115 and target price of 1.7820
