• GBP/AUD declined on Monday as increased risk appetite and dovish Fed expectations added to negative sentiment.
• The pair, already trading lower on the day, extended its drop to hit 1.8067, a one month low, it was last down 0.09% on the day.
• Selling pressure will remain in the short-term, only a move above 1.8175 strong resistance will shift the bias higher.
• From a technical viewpoint, the moving averages are pointing southwards, while the RSI is strongly bearish at 47.85.
• On the upside, Immediate resistance is located at 1.8110 ( 50 DMA), any close above will push the pair towards 1.8175 ( 50 % fib).
• On the downside, strong support is seen at 1.8061 (38.2% fib ) and break below could take the pair towards 1.7922 (23.6% fib).
Recommendation: Good to sell around 1.8100, with stop loss of 1.8250 and target price of 1.7980.
