FxWirePro : GBP/AUD outlook weaker on renewed downside pressure

• GBP/AUD declined sharply on Wednesday  as investors digested soft UK GDP and US CPI data ahead of UK election.

•First-time applications for U.S. unemployment benefits increased last week, and the number of people on jobless rolls rose to a 2.5-year high towards the end of June.

•Additionally, a measure of U.S. services sector activity dropped to a four-year low in June due to a sharp decline in orders, potentially indicating a loss of momentum in the economy at the end of the second quarter.

• The Office for National Statistics reported   that UK GDP remained unchanged in April compared to the previous month, marking a slowdown from the 0.4% growth observed in March.

• The S&P Global UK Services Purchasing Managers Index fell in June to 52.1 from 52.9 in May, its lowest reading since November but revised up from a preliminary estimate of 51.2.

• Technicals are favouring bearish sentiment as RSI is at 42 and the pair is trading below   5,10 & 11-DMAs.

• Immediate resistance is located at 1.9049(38.2% fib), any close above will push the pair towards 1.9098 (50%fib)

• Strong support is seen at 1.8980 (23.6% fib)and break below could take the pair towards 1.8933(July 1st low).

Recommendation: Good to sell  around 1.9000, with stop loss of 1.9180 and target price of  1.8940