FxWirePro: GBP/AUD recovery lacks traction, stay short, target 200-DMA at 1.6705

• GBP/AUD opened trade on Monday with a bearish gap, but recovered shortly to close the gap down and hit session highs at 1.6959.
   
• The pair recovered from 7-week lows of 1.6770 hit on Friday's trade, but upside lacks traction.
   
• Upside was rejected at 1.6959 and the pair is currently trading at 1.6854.
   
• Technical indicators on weekly charts are also biased lower, RSI points south, while Stocks have shown rollover from overbought zone.
   
• We see scope for test of 200-DMA at 1.6705. Further weakness only on break below.

Support levels - 1.68, 1.6776 (50% Fib of 1.5902 to 1.7650 rally), 1.6707 (200-DMA)

Resistance levels - 1.6880 (Apr 24 low), 1.6983 (38.2% Fib), 1.70, 1.7055 (5-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-rejected-at-highs-5-DMA-at-17212-caps-upside-745289) has hit all targets.

Recommendation: Bias lower. Book partial profits at lows, lower trailing stop to 0.7050, hold for 200-DMA at 1.6705.