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• GBP/AUD declined on Wednesday as sterling was weighed down after data showing the UK economy had entered a deep recession.
• UK economy shrank by 20.4% between April and June, when the country’s coronavirus lockdown was tightest, data showed on Wednesday
• The pair currently is approaching support at 1.8160 (50% fib). A break under 1.8160 would unmask 1.8100 level in the short term.
• On the upside, Immediate resistance is located at 1.8237 ( 5 DMA), any close above will push the pair towards 1.8293 (38.2% fib)
• On the downside, support is seen at 1.8164 (23.6% fib ) and break below could take the pair towards 1.8102 (21 DMA).
Recommendation: Good to sell on rally around 1.8180, with stop loss of 1.8333 and target price of 1.7150.
