• GBP/AUD dipped on Tuesday, as economic fallout from the lockdown and Brexit concerns weighed on British pound.
• The government declared the lockdown that has paralysed much of Britain’s economy, impact on the economic outlook.
• At GMT 13:40, the pair already trading lower on the day, extended its drop to hit $1.9483, a 1-week low, and was last down 0.46% on the day .
• Any upside is like to be limited as barrier at 1.9555 (Trendline) is set to restricting higher move.
• Technical signals are bearish as RSI is at 38, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9555 (Trendline), any close above will push the pair towards 1.9730 (21 DMA).
• On the downside, strong support is seen at 1.9420 (50 DMA) and break below could take the pair towards 1.9342 (Lower BB).
Recommendation: Good to sell below 1.9550, with stop loss of 1.9750 and target price of 1.9000.
