• GBP/AUD gained on Monday as sterling was boosted by improved risk appetite in global markets, but upside was limited as investor’s awaited debate and vote on the proposed bill.
• The bill will be fiercely debated in the lower house of parliament on Monday and could be approved, but is likely to struggle in the upper house later this week .
• GBP/AUD is likely to remain capped below 1.7842 (61.8% fib) as deadline for a trade agreement approaches with little sign of a compromise.
• Technically, sterling's setup looks bearish with 5, 10 and 21 daily moving averages are falling, while RSI is strongly bearish at 30.
• Immediate resistance is located at 1.7676 (50% fib ), any close above will push the pair towards 1.7735 (5 DMA).
• Strong support is seen at 1.7504 (23.6%fib) and break below could take the pair towards 1.7303 (23.6%fib).
Recommendation: Good to sell around 1.7640, with stop loss of 1.7800 and target price of 1.7540
