• GBP/AUD declined on Thursday as widening Fed-BoE rate divergence, Russian saber-rattling ,Chinese economic slowdown fears weighed on GBP.
• The is pair heading towards the 23.6% fib, as the outlook for pound turns more negative. Only a break and daily close above 50% fib at 1.7870 will shift bias to the upside.
• Technical signals are bearish as RSI is at 44, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7594 (14DMA), any close above will push the pair towards 1.7671 (38.2% fib).
• Immediate support is seen at 1.7442 (23.6% fib) and break below could take the pair towards 1.7306 (Lower BB).
Recommendation: Good to sell on rallies around 1.7550, with stop loss of 1.7650 and target price of 1.7440
