• GBP/AUD declined sharply on Friday after data showed the U.K. economy contracted in the second quarter.
• Data from the Office for National Statistics showed that GDP fell 0.1 percent sequentially in the second quarter, after a revised 0.8 percent growth in the previous quarter.
• Technical signals are bearish as RSI is at 29, daily momentum studies 5, 9 and 10 DMAs are trending down.
Immediate resistance is located at 1.7078 (38.2% fib), any close above will push the pair towards 1.7187 (50% fib).
• Immediate support is seen at 1.7024(Daily low ) and break below could take the pair towards 1.6953 (23.6% fib).
Recommendation: Good to sell on rallies around 1.7060, with stop loss of 1.7150 and target price of 1.6900.
