• 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
