FxWirePro: GBP/AUD rejected at 20-DMA, good to go short on rallies

• GBP/AUD 0.35% lower on the day, edges lower after rejection at 20-DMA on Tuesday's trade.
   
• The pair has broken below 5-DMA at 1.6209, intraday bias lower.
   
• Technical indicators are bearish, the pair is trading in a downward sloping channel.
   
• The pair is struggling to close below 78.6% Fib retrace of 1.5789 to 1.76509 rally at 1.6187.
   
• Break below likely to see test of 1.6040 (trendline) and then 1.60 (88.6% Fib).
   
• Violation at 1.60 finds little support till channel base at 1.5875.

Support levels - 1.61, 1.6040 (trendline), 1.60 (88.6% Fib), 1.5875 (channel base)

Resistance levels - 1.62, 1.6210 (5-DMA), 1.6187 (78.6% Fib retrace of 1.5789 to 1.76509 rally)

Recommendation: Good to go short around 1.62/6210 levels, SL: 1.63, TP: 1.6170/ 1.61/ 1.6040

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 36.2739 (Neutral), while Hourly AUD Spot Index was at 147.614 (Bullish) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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