- GBP/AUD failed to break below minor support at 1.7066 on Wednesday's trade. Caution prevails ahead of UK elections.
- UK election will shape up next direction for the pound in the coming months.
- Should the UK election fails to deliver any winner and results in a hung parliament, pound is likely to see major impact.
- On the other side, a Conservatives’ victory could provide the much-needed impetus to pound.
- Brexit negotiations and the possibility of ‘Hard Brexit’ still to keep pressure on the pound.
- GBP/AUD is currently holding minor support at 1.7066 (May 2 low), break below will accentuate weakness.
- RSI below 50, biased south. Stochs are also biased lower and MACD supports trend lower.
- Technical indicators on weekly charts are also biased lower, RSI points south, while Stocks are on verge of rollover from overbought zone.
Support levels - 1.7100 (50-DMA), 1.7066 (May 2 low), 1.6983 (38.2% Fib of 1.5902 to 1.7650 rally)
Resistance levels - 1.7211 (5-DMA), 1.7238 (23.6% Fib), 1.7321 (20-DMA)
Recommendation: Good to go short on break below 1.7066, SL: 1.72, TP: 1.6990/ 1.6880/ 1.6780.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 44.1727 (Neutral), while Hourly AUD Spot Index was at 124.37 (Bullish) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
