• GBP/AUD recovered some ground on Tuesday as expectations about an emergency intervention from UK central bank increased.
• The Bank of England and UK Treasury attempted to soothe market concerns after the government announced a raft of unfunded tax cuts.
• GBP/AUD remains vulnerable, only a break and daily close above 1.6822 (9DMA) will shift bias to the upside.
• Technical are bearish, daily RSI is negative at 35, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6720 (50%fib ), any close above will push the pair towards 1.6812 (9DMA).
• Strong support is seen at 1.6504 (38.2%fib) and break below could take the pair towards 1.6221 (23.6% fib)
Recommendation: Good to sell on around 1.6670, with stop loss of 1.6780 and target price of 1.6560
