• GBP/ AUD initially gained on Wednesday but gains fizzled as worries about a slowdown in economic growth in UK dragged the pair towards recent lows.
• The (PMI) data showed growth in Britain’s private sector slowing to a crawl in August, with factory output falling and the larger services sector ekeing out only a modest expansion.
• The pair drops below the 5-DMA ,break below 23.6%fib support will accelerate downtrend towards 1.6950 level.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 37 bearish, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.7098 (5DMA), any close above will push the pair towards 1.7159(38.2%fib).
• Support is seen at 1.7083(23.6%fib) and break below could take the pair towards 1.6993(Lower BB).
Recommendation: Good to sell around 1.7100, with stop loss of 1.7200 and target price of 1.7000
