• GBP/AUD declined on Monday as buoyant risk appetite and expectations that interest rates will not be cut anytime soon.
• The RBA has nearly ruled out a rate cut by year-end, but markets remain optimistic, with a 70% chance that the RBA could still ease rates before the year is over.
• GBP/AUD is approaching 38.2%fib support, break lower risks run towards 1.9250 level.
• Technical are bearish, daily RSI is turning negative at 42 , daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9427(50%fib ), any close above will push the pair towards 1.9482(Aug 16th high).
• Strong support is seen at 1.9295 (38.2%fib ), and break below could take the pair towards 1.9218 (Lower BB).
Recommendation: Good to sell on around 1.9300 with stop loss of 1.9370 and target price of 1.9250
