FxWirePro: GBP/AUD gains some upside momentum but still bearish

• GBP/AUD initially dipped but later recovered  as investors assessed the appointment of Kevin Warsh as the next chair of the U.S. Federal Reserve..

• U.S. President Donald Trump on Friday said he had chosen former Federal Reserve governor Kevin Warsh to head the ⁠U.S. central bank.

• President Donald Trump on Friday selected Warsh to lead the U.S. central bank after Jerome Powell’s term ends in May, with Warsh expected to favor lower rates but avoid aggressive easing..

• Geopolitical tensions remain in focus after Trump said he plans to speak with Iran, as the U.S. sent another warship to the Middle East and the Pentagon said the military is ready to act on the president’s decisions.

• Immediate resistance is located at 1.7126 (38.2%fib), any close above will push the pair towards 1.9928(SMA 20).

• Immediate support is seen at 1.9516 (23.6%fib) and break below could take the pair towards 1.9411 (Lower BB).

Recommendation: Good to sell around 1.7000 with stop loss of 1.7100 and target price of 1.7620