• GBP/AUD recovered some ground on Tuesday after in line with expectations Purchasing Managers' index (PMI) data from UK supported pound.
• The PMI composite flash estimate dropped to 50.9 in August from 52.1 in July. Economists polled had forecast the index would fall to 51.1.
• GBP/AUD technical outlook is bearish in short-term as RSI is lower at 40, moving averages are 5,11 and 14 DMA’s atre trending lower.
• Immediate resistance is located at 1.7131(5DMA ), any close above will push the pair towards 1.7249(38.2% fib).
• Strong support is seen at 1.7045(23.6% fib) and break below could take the pair towards 1.6996 (Lower BB).
Recommendation: Good to sell around 1.7100, with stop loss of 1.7200 and target price of 1.7000.
