- GBP/AUD breaks major trendline support at 1.7290, intraday bias lower.
- The pair has hits fresh 4-week lows post UK data as the pound remained well offered across the board.
- Data released showed slowing credit off-take, with net lending to individuals and mortgage approvals falling more-than-expected during the month of April.
- Risk-off environment which remains prevalent on the back of political uncertainty stemming out of the UK keeps GBP subdued.
- We see scope for test of 1.6983 (50-DMA & 38.2% Fib of 1.59024 to 1.76509).
- Bearish invalidation on close above 5-DMA at 1.7236.
Support levels - 1.7067 (May 2 lows), 1.6988 (50-DMA), 1.6983 (38.2% Fib)
Resistance levels - 1.7236 (5-DMA), 1.73, 1.7364 (Apr 28 high)
Recommendation: Good to go short on rallies around 1.7180/95, SL: 1.7240, TP: 1.71/ 1.7070/ 1.6990
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -164.476 (Bearish), while Hourly AUD Spot Index was at 13.1346 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
