• GBP/AUD initially gained on Monday but gave up ground as weak UK GDP weighed on pound.
• Weak UK GDP data and some of the post-Brexit trade rules for Northern Ireland added to the risk-sensitive pound's woes.
• The is pair heading towards the (38.2%fib), as the UK news turns more negative. Only a break and daily close above 38.2% fib resistence will shift bias to the upside.
•Technical signals are bearish as RSI is at 47, daily momentum studies 5, 9 and 10 DMAs are trending down.
•Immediate resistance is located at 1.7561 (21 DMA ), any close above will push the pair towards 1.7632 (38.2% fib).
•Immediate support is seen at 1.7424(38.2%fib ) and break below could take the pair towards 1.7276 (Lower BB).
Recommendation: Good to sell on rallies around 1.7500, with stop loss of 1.7600 and target price of 1.7390.
