• GBP/AUD reversed course on Thursday as China's pledge to spend fuelled bid for riskier assets like Australian dollar.
• Beijing committed to additional policy measures aimed at boosting growth just days after unveiling significant interest rate cuts and new funding initiatives for the markets..
• As confidence in China's economic recovery grows, market participants are increasingly willing to take on risk, leading to a surge of riskier assets.
• Technical are bearish, daily RSI is negative at 47, daily momentum studies 11and 14 DMAs are trending down.
• Immediate resistance is located at 1.9558 (38.2%fib ), any close above will push the pair towards 1.9614 (Sep 16th high).
• Strong support is seen at 1.9423(50%fib) and break below could take the pair towards 1.9368 (Lower BB).
Recommendation: Good to sell around 1.9480 , with stop loss of 1.9550 and target price of 1.9380
