- GBP/AUD extending downside for 4th consecutive session, scope for further downside.
- British pound dented by election jitters and weak growth.
- On the other side, Australia's quarterly GDP growth came-in at 0.3%, slightly better-than expected, supporting the Australian Dollar.
- GBP/AUD is currently holding minor support at 1.7066 (May 2 low), break below will accentuate weakness.
- RSI below 50, biased south. Stochs are also biased lower and MACD supports trend lower.
- Technical indicators on weekly charts are also biased lower, RSI points south, while Stocks are on verge of rollover from overbought zone.
Support levels - 1.7082 (50-DMA), 1.7066 (May 2 low), 1.6983 (38.2% Fib of 1.5902 to 1.7650 rally)
Resistance levels - 1.7238 (23.6% Fib), 1.7256 (5-DMA), 1.7332 (20-DMA)
Recommendation: Good to go short on break below 1.7066, SL: 1.72, TP: 1.6990/ 1.6880/ 1.6780.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -69.776 (Neutral), while Hourly AUD Spot Index was at 84.7829 (Slightly bullish) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
