• GBP/AUD declined on Wednesday as weak UK construction PMI data weighed on British pound.
• The construction Purchasing Managers’ Index (PMI ), slumped to 8.2 in April from 39.3 in March.
• At GMT 16:33, the pair already trading lower on the day, extended its drop to hit 1.9190 1 week low, and was last down 0.33% on the day .
• Technical signals show the pair could lose more ground in the short-term as RSI is at 40 bearish, daily momentum studies 5, 11 and 21 DMAs are trending south.
• On the upside, Immediate resistance is located at 1.9325 (9 EMA ), any close above will push the pair towards 1.9423 (23.6%fib ).
• On the downside, strong support is seen at 1.9185 (Daily low) and break below could take the pair towards 1.9040 (Lower BB).
Recommendation: Good to sell on rallies around 1.9300, with stop loss of 1.9430 and target price of 1.9050.
