FxWirePro: GBP/AUD edges higher but bias is still bearish

• GBP/AUD edged higher  on Tuesday as Australian dollar weakened following  disappointing Australian economic data.

• Australian consumer sentiment dropped for a second straight month in October, with worries over household finances rising amid speculation that interest rates may stay elevated, according to Tuesday’s survey.

• The Westpac-Melbourne Institute survey showed Australia’s main consumer sentiment index dropped 3.5% to 92.1 in October, following a 3.1% fall in September, with readings below 100 signaling more pessimists than optimists.

• Following last week’s hawkish outlook, investors have reduced expectations for an imminent rate cut by the Reserve Bank of Australia.

• Technical signals are bearish as RSI is at 43, daily momentum studies  14 DMA, 21 EMA are trending down
 
•  Immediate resistance is located at 2.0419 ( 20 DMA), any close above will push the pair towards 2.0459 ( 38.2%fib).

• Strong support is seen at 2.0322 (23.6%fib) and break below could take the pair towards 2.0303 (Lower trendline).

 Recommendation: Good to sell around 2.0400, with stop loss of 2.0500  and target price of 2.0320.