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FxWirePro: GBP/ AUD resumes downside after weak UK GDP data fuels recession fears

• GBP/ AUD declined on Wednesday  after data showed British economic output contracted by more than expected in July.

• British economic output contracted by a larger-than-expected 0.5% in July from June, data showed, worse than what economists had forecast  .

• Bearish are on course to force a daily close under 1.9433 (50%fib) support,that would open the pathway to much bigger losses  . 

• Technical signals show the pair could lose more ground in the short-term as RSI has tuned lower , daily momentum studies  5, 9 and 11 DMAs are trending  down.

• Immediate resistance is located at 1.9482(5DMA), any close above will push the pair towards 1.9584(38.2%fib).

• Immediate support is seen at 1.9433 (50%fib) and break below could take the pair towards 1.9340(Lower BB).

Recommendation: Good to sell around 1.9440, with stop loss of 1.9650 and target price of 1.9350

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