FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (USCAD and EURJPY) for the day)
FxWirePro: GBP/AUD dips below lower range, bearish bias increases
•GBP/AUD dipped on Thursday as rise in commodity prices boosted the commodity-price sensitive Australian dollar.
• Australian dollar rallied as equity, copper gains helped buoy Antipodean currency.
• GBP/AUD dipped towards at 1.6946. A break and daily close above 11.6903 (23.6%fib) will accelerate further downwards.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 42 bearish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.7020 (14DMA), any close above will push the pair towards 1.7122 (38.2%fib).
• Strong support is seen at 1.6903 (23.6%fib) and break below could take the pair towards 1.6849 (Lower BB ).
Recommendation: Good to sell around 1.6950, with stop loss of 1.7080 and target price of 1.6880