• GBP/AUD dipped on Monday, as sterling remained under pressure from concerns over the coronavirus outbreak. • The pair broke lower ascending trendline at 1.9555 and fell to hit daily low at at 1.9495. GBP is set to be o…
• GBP/AUD dipped on Monday, as sterling remained under pressure from concerns over the coronavirus outbreak.
• The pair broke lower ascending trendline at 1.9555 and fell to hit daily low at at 1.9495. GBP is set to be outmatched by the Australian dollar in the short term.
• Any upside is like to be limited as barrier at 1.9555 (Trendline) is set to restricting higher move.
• Technical signals are bearish as RSI is at 39, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9555 (Trendline), any close above will push the pair towards 1.9741 (11 DMA).
• On the downside, strong support is seen at 1.9420 (50 DMA) and break below could take the pair towards 1.9342 (Lower BB).
Recommendation: Good to sell below 1.9550, with stop loss of 1.9750 and target price of 1.9000.
