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FxWirePro: GBP/AUD heads deeper into bear territory, 23.6% fib fibonacci eyed

• GBP/AUD declined sharply on Thursday  as investors looked ahead to parliamentary polls in the country were underway with the Labour Party looking set to win.

•  Opinion polls showed the Labour Party winning, replacing the Conservatives after 14 years. Investors believe the market has already priced in the change.

• The pound's recovery has been effected by   the Bank of England's cautious attitude to rate cuts relative to European peers.

• Technicals are favouring bearish sentiment as RSI is at 40 and the pair is trading below   5,10 & 11-DMAs.

• Immediate resistance is located at 1.9028 (38.2% fib), any close above will push the pair towards 1.9078 (50%fib)

• Strong support is seen at 1.8952 (23.6% fib)and break below could take the pair towards 1.8919(Lower BB).

Recommendation: Good to sell  around 1.8980, with stop loss of 1.9000 and target price of  1.8900

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