• GBP/AUD recovered some ground on Tuesday as U.S. inflation print for cues on the trajectory of interest rate.
• The pair pulled back after failing to break support at 1.8585(38.2% fib), it was last trading at 1.7426
• Technical signals are bearish as RSI at 45, daily momentum studies 21, 30 and 50 DMA’s are trending down.
• Immediate resistance is located at 1.8761(5DMA), any close above will push the pair towards 1.8831( 23.6%fib).
• Immediate support is seen at 1.8585(38.2% fib) and break below could take the pair towards 1.8430(Apr 21st low).
Recommendation: Good to sell around 1.8680 with stop loss of 1.8740 and target price of 1.8600.
