• GBP/AUD declined on Friday as higher commodity prices and persistent bets on further RBA rate hikes may be lifted boosted Australian dollar.
• Pair traded in 1.8762 /1.8654 range and was last trading at 1.8648 in late US afternoon.
• GBP/AUD is now on course to register a close below the 11.8622 (38.2%fib )level, chart points to bigger drop towards 1.8550.
• Technical signals are bearish as RSI is at 43, daily momentum studies 5,9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.8687( 5DMA), any close above will push the pair towards 1.8844 (23.6%fib)
• Strong support is seen at 1.8635 (38.2%fib ) and break below could take the pair towards 1.8540(Lower BB).
Recommendation: Good to sell around 1.8650, with stop loss of 1.8760 and target price of 1.8590
