• GBP/AUD declined on Tuesday as Australian dollar was boosted by the prospect of policy tightening by the Reserve Bank of Australia.
• The Reserve Bank of Australia (RBA) opened the door to its first rate hike in more than a decade on Tuesday, as it abandoned an earlier promise to be patient on policy.
• GBP/AUD chart has taken a turn for the worse after today’s large drop.Overall risk is growing for a bigger drop towards 1.7100.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 23.
• Immediate resistance is located at 1.7370( 38.2%fib), any close above will push the pair towards 1.7423 (5DMA).
• Strong support is seen at 1.7193 ( Lower BB) and break below could take the pair towards 1.7112 ( 23.6%fib).
Recommendation: Good to sell around 1.7250, with stop loss of 1.7380 and target price of 1.7130
