- GBP/AUD extends weakness for 2nd consecutive week, closes below 5W SMA in the previous week's trade.
- Pound remains weak as Brexit negotiations proceed to next stage - regarding trade and the transition period.
- Technical studies bearish, RSI sharply lower and gains downside traction below 50 levels.
- Momentum studies bearish, MACD supports trend lower. Bearish divergence from price action seen on RSI and Stochs.
- 50-DMA at 1.7301 is immediate support. Violation there could see further downside.
- Immediate resistance lies at 5-DMA at 1.7506. We see bearish invalidation above 20-DMA at 1.7617.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-Trade-Idea-1055795) has hit all targets.
Recommendation: Watch out for break below 50-DMA for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -111.692 (Bearish), while Hourly AUD Spot Index was at 105.102 (Bullish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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