• GBP/AUD recovered some ground on Monday as the pairs recovery was aided by profit taking on shorts.
• GBP/AUD bounced from the Asia low, as the cross was severely over sold. Resistance at 1.8060 (5DMA) is likely to cap further upside in the pair.
• Technical signals are bearish as RSI is at 16, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7990 ( 38.2%fib), any close above will push the pair towards 1.8060 (5DMA)
• Strong support is seen at 1.7866 (23.6%fib) and break below could take the pair towards 1.7736 (Daily low).
Recommendation: Good to sell on rally around 1.7930, with stop loss of 1.8120 and target price of 1.7700.
