• GBP/AUD initially dipped on Thursday but recovered slight ground as investors focused on August US jobs report due on Friday.
• Pull back has been very limited. The cross pairs bearish bias is set to strengthen, likely to drop towards 1.8600
• Technical signals are bearish as RSI is at 40, daily momentum studies 5,9,11 DMA’s, are trending down.
• Immediate resistance is located at 1.8746 (50%fib ), any close above will push the pair towards 1.8802 (9DMA).
• Strong support is seen at 1.8632 (38.2%fib) and break below could take the pair towards 1.8577 (Lower BB).
Recommendation: Good to sell around 1.8700 with stop loss of 1.8800 and target price of 1.8620.
