• GBP/AUD continued its recent descent on Thursday as markets turned nervous about the impact of rate hikes on the British economy.
• UK GDP data on Friday will be scrutinized for hints at inflation. A weak UK GDP read is likely to put downward pressure on GBP/AUD.
• The is pair heading towards the 38.2% fib support, as near term direction of the pair is likely to be driven by current price action.
• Immediate resistance is located at 1.9151(Daily high), any close above will push the pair towards 1.9262 (23.6%fib).
• Strong support is seen at 1.9002 (38.2% fib)and break below could take the pair towards 1.8913 (10DMA).
Recommendation: Good to sell on around 1.9050, with stop loss of 1.9150, and target price of 1.8940.
