- Pound little impressed with UK Q2 preliminary GDP figures which were in line with expectations, as Brexit uncertainty continues to weigh.
- GBP/AUD rejected at highs at 1.6528 on Wednesday's trade. The pair extending downside on the day.
- The pair slips below 5-DMA. Downside finds strong support by trendline at 1.6285. We see weakness on break below.
- Break below trendline opens scope for test of 88.6% Fib retrace of 1.5902 to 1.7650 rally at 1.6101.
- Data released earlier today showed Australia import price index dropped 0.1% quarter-on-quarter vs. 0.7% expected and 1.2% previous.
- Aussie ignores weak Australia import price index. In the UK docket, CBI realized sales data will be in focus.
Support levels - 1.6285 (trendline), 1.6268 (July 20 low), 1.6180 (Mar 29 low)
Resistance levels - 1.6400 (5-DMA), 1.6570 (61.8% Fib of 1.5902 to 1.7650 rally), 1.6670 (200-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-on-minor-recovery-path-awaiting-key-UK-GDP-data-for-further-impetus-821039) has been stopped out.
Recommendation: Watch out for break below trendline support to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 97.8129 (Bullish), while Hourly AUD Spot Index was at 46.2162 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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