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

• GBP/AUD eased on Tuesday as dovish BoE rate outlook kept sterling on the back foot. • BoE has almost certainly reached the end of its campaign of raising interest rates, after the central bank last week left monetary p…

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FxWirePro : GBP/AUD set for bigger drop, but close below key fibo needed
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• GBP/AUD eased on Tuesday  as  dovish BoE rate outlook kept  sterling on the back foot.

•   BoE has almost certainly reached the end of its campaign of raising interest rates, after the central bank last week left monetary policy unchanged with the economy slowing.  

• A close below 23.6% fib will likely  trigger a new bearish phase with potential for 1.8850.

• Technicals are favouring bearish sentiment as RSI is at 32 and the pair is trading below   5,10 & 11-DMAs.

• Immediate resistance is located at 1.9026 (5DMA), any close above will push the pair towards 1.9100(38.2%fib)

• Strong support is seen at 1.8943 (23.6% fib)and break below could take the pair towards 1.8873 (Lower BB).

Recommendation: Good to sell  around 1.9000, with stop loss of 1.9150 and target price of  1.8900

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