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FxWirePro: GBP/AUD key support held, downside risk remains

• GBP/AUD declined sharply on Thursday  but cut some of its earlier losses as the pair failed to breach support at 1.7810 (50%fib).

• GBP/AUD traded as low as 1.7810 before recovering some ground to trade at 1.7873

• The is pair heading towards 50%fib, as near term direction of the pair is likely to be driven by current price action.  

• Technical are bearish, daily RSI is negative at 47, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.7904 (5DMA ), any close above will push the pair towards 1.7938 (61.8%fib ).

• Strong support is seen at 1.7810 (50%fib) and break below could take the pair towards 1.7727 (Lower BB).

Recommendation: Good to sell on  around 1.7880, with stop loss of 1.8000 and target price of 1.7800


 

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