• GBP/AUD initially gained on Tuesday but rally fizzled after weak UK PMI data.
• Pound gave up earlier gains against Australian dollar as weak UK PMI highlighted growth risks for UK economy.
• GBP/AUD remains vulnerable, only a break and daily close above 1.7896 (38.2%fib)will shift bias to the upside.
• Technical are bearish, daily RSI is negative at 43, daily momentum studies 14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.7854 (9DMA), any close above will push the pair towards 1.7896 (38.2%fib).
• Strong support is seen at 1.7659 (50%fib) and break below could take the pair towards 1.7597(Lower BB).
Recommendation: Good to sell on around 1.7800, with stop loss of 1. 1.7880 target price of 1.7730
