FxWirePro: GBP/AUD extends drop, plunge to test a key fibo grows

• GBP/AUD declined on Thursday as investors weighed up the outlook for an economic recovery from COVID-19 in the UK.

• Underlying trend remains bearish. A break below 1.7896 (38.2%fib)will spur fresh downward momentum.

• At GMT 16:50, the pair was trading 0.16% lower at 1.7925, lowest since 19th April.
 
• Technical signals show the pair could lose more ground in the short-term as RSI is at 47 bearish, daily momentum studies 5, 9  DMAs are trending down.

• Immediate resistance is located at 1.7956( 50DMA), any close above will push the pair towards 1.7994 (50%fib).

• Strong support is seen at 1.7896 (38.2%fib) and break below could take the pair towards 1.7794 (Lower BB).

Recommendation: Good to sell below 1.7930, with stop loss of 1.8020 and target price of 1.7860