FxWirePro: GBP/AUD drops below 1.9000 level, heads deeper into bear territory

• GBP/AUD declined on Friday after stronger-than-expected GDP data raised concerns about potential interest rate cuts by the Bank of England.

• British gross domestic product expanded by 0.7% from the previous quarter, above an initial estimate of 0.6% growth, the Office for National Statistics said. GDP fell for two quarters in a row in the second half of 2023.

•The longer-term growth picture is weak, first-quarter gross domestic product was just 0.3% higher than a year earlier, above an initial estimate of 0.2%.

• The pair is approaching support at 1.5469,a daily close below   will accelerate towards 1.4968(Lower BB).

• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 37

• Immediate resistance is located at 1.9018 (38.2% fib ), any close above will push the pair towards 1.9092(50% fib).

• Immediate support is seen at 1.8927 (23.6% fib ) and break below could take the pair towards 1.8875 (Lower BB ).

Recommendation: Good to around 1.8960, with stop loss of 1.9050,  and target price of 1.8900