• GBP/AUD recovered some ground from early declined on Friday after US payrolls data as market assessed Fed rate path.
• Next week focus will be on UK employment, U.S. CPI data and central bank appearances from the Fed and BoE.
• Bears have tightened their grip on this market,a break and daily close under 38.2% fib support could deepen bearish outlook further.
• Technicals are bearish as daily RSI is at 46 , daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9097(50% fib), any close above will push the pair towards 1.9127 (21DMA).
• Strong support is seen at 1.9001(38.2% fib) and break below could take the pair towards 1.8971 (Dec 4th low).
Recommendation: Good to sell on around 1.9080, with stop loss of 1.9180 and target price of 1.9000
