- GBP/AUD pauses downside after 4 successive days of downside, bias still bearish.
- Dismal Australia retail trade data weighing heavily on the Aussie, pushing the pair higher.
- Australia retail sales have posted their biggest fall in about four-and-a-half years, plunging 0.6 percent in August.
- Downbeat retail sales fuelled concerns over the economic outlook, raising scope for RBA to stay pat for longer.
- The pair has retraced dip below 20-DMA at 1.6852, edged higher after hitting session lows at 1.6825.
- Technical indicators on intraday charts are bearish, scope for downside intact.
- Close above 5-DMA at 1.6934 could see minor upside, decisive break below 20-DMA will accentuate weakness.
Support levels - 1.6852 (20-DMA), 1.6783 (38.2% Fib), 1.6729 (100-DMA)
Resistance levels - 1.6933 (5-DMA), 1.6940 (23.6% Fib retrace of 1.61625 to 1.71807 rally), 1.7110 (Apr 19th high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-Bearish-divergence-on-RSI-and-Stochs-raises-scope-for-downside-in-GBP-AUD-go-short-on-break-below-5-DMA-at-16933-916407) has hit TP1.
Recommendation: Book partial profits. Watch out for break below 20-DMA for further downside targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -124.698 (Bearish), while Hourly AUD Spot Index was at 13.9261 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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