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

• GBP/AUD dipped on Monday  as gains in oil ,equities  & copper  helped  buoy risk sensitive Australian dollar .

• Traders were looking to the Australian  consumer price reports this Wednesday, which are expected to show inflation peaking.

• The pairs fall below  9DMA  level has increased the growing bearish strength, putting focus on support at 1.7550 (38.2% fib).

• Technicals are favouring bearish sentiment as RSI is at 46 and the pair is trading below   5,10 & 11-DMAs. 

• Immediate resistance is located at 1.7645 (9DMA), any close above will push the pair towards 1.7709(50% fib).

• Strong support is seen at 1.7550 (38.2% fib)and break below could take the pair towards 1.7477 (Jan 17th low).

Recommendation: Good to sell  around 1.7620, with stop loss of 1.77000 and target price of 1.7520