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FxWirePro: GBP/AUD neutral in the near-term, scope for downward resumption

• GBP/AUD declined on Tuesday as sterling was weighed  down amid doubts over the Bank of England’s policy path and increased political uncertainty.

• Investors have become increasingly unsure whether the Bank of England will follow some of its global counterparts in raising interest rates aggressively to curb inflation.  

• Technical are bearish, daily RSI is negative at 46, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.7637 (5 DMA ), any close above will push the pair towards 1.7741 (38.2% fib).

• Strong support is seen at 1.7459 (23.6% fib) and break below could take the pair towards 1.7251(Lower BB).

Recommendation: Good to sell on  around 1.7610 with stop loss of 1.7750 and target price of 1.7520

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