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FxWirePro: GBP/ AUD gives back chunk of early gains, eyes another drop

• GBP/ AUD initially gained on Tuesday but rally fizzled as  data showed UK consumer spending failed to match inflation in December.

• GBP/ AUD  bulls will find it difficult to pull the pound higher   as the UK's inflation and growth uncertainties will continue to weigh on GBP/ AUD  .

• Technical signals show the pair lose more ground in the short-term as RSI is bearish at 38, daily momentum studies  5, 9 and 11 DMAs are trending  down. 

• Immediate resistance is located at 1.7677 (9DMA), any close above will push the pair towards 1.7720 (38.2% fib).

• Immediate support is seen at 1.7493 (23.6% fib) and break below could take the pair towards 1.7450 (Lower BB).

Recommendation: Good to sell  around 1.7630, with stop loss of  1.7710 and target price of 1.7600
 

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