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FxWirePro:: GBP/AUD set for bigger drop, but close below key fibo needed

• 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.
 

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