• GBP/AUD declined on Friday as sterling was weighed down by stronger Australian dollar and slightly weaker UK GDP data.
•Britain’s economy shrank in January when the country went back into a coronavirus lockdown.
•GBP/AUD weakness drives the cross pair near 1.7889 (38.2%fib ). A break under 1.7889 would unmask 1.7800 level in the short term.
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 48.
• Immediate resistance is located at 1.7964 (9DMA ), any close above will push the pair towards 1.8096 (50%fib).
• Immediate support is seen at 1.7889 (38.2%fib ) and break below could take the pair towards 1.7711 (Lower BB ).
Recommendation: Good to sell around 1.7920 with stop loss of 1.8000 and target price of 1.7840.
