• GBP/AUD declined on Wednesday as higher oil prices and increased risk appetite in the market boosted Australian dollar.
• Oil prices gained on Wednesday on signs of tighter supply and optimism about a potential recovery of demand in China.
• A close below 38.2% fib support, would add to sterling's bearish structure, opening the way towards 1.7600 level.
• Technical signals show the pair could lose more ground in the short-term as RSI is lower at 49, daily momentum studies 9, 11 and 21 DMAs are trending down.
• Immediate resistance is located at 1.7874(5DMA),any close above will push the pair towards 1.7975(50% fib).
• Immediate support is seen at 1.7733(38.2% fib) and break below could take the pair towards 1.7605(Nov 9th low )
Recommendation: Good to sell below 1.7820, with stop loss of 1.7900 and target price of 1.7650
