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FxWirePro: GBP/AUD drops to two-week low, downside risks persist

• GBP/AUD declined on Thursday as  RBA’s continued   hawkish tone  boosted Australian dollar.

• In a speech, RBA Governor Michele Bullock reiterated that the central bank will not hesitate to raise interest rates if necessary to control inflation, reinforcing its hawkish stance.

• The pair dropped to test 50% fib support. A break under  would unmask 1.9200 level .

• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 44.

•Immediate resistance is located at 1.9486 (38.2%fib ) , any close above will push the pair towards 1.9679  (23.6%fib).

• Immediate support is seen at 1.9322(50% fib ) and break below could take the pair towards 1.9032 (61.8% fib).

Recommendation: Good to sell around 1.9350, with stop loss of 1.9200 and target price of 1.9260.

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