• GBP/AUD declined on Tuesday as Australian dollar was boosted after RBA raised interest rates and warned that even further tightening might be needed.
• Reserve Bank of Australia (RBA) lifted rates by 25 basis points to 3.85%, bringing its tightening in the past year to an eye-watering 375 basis points.
•The pair reaches 1.8626 after extending south from 1.8864(Daily high). 1.8930 is the lowest level since 25th April.
• Technical outlook is bearish in short-term as RSI has turned lower, moving averages are trending down.
• Immediate resistance is located at 1.8805(38.2%fib),any close above will push the pair towards 1.8849(5DMA ).
• Immediate support is seen at 1.8610(50%fib) and break below could take the pair towards 1.8569(Apr 24th low ).
Recommendation: Good to sell below 1.8720, with stop loss of 1.8850 and target price of 1.8640
