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FxWirePro: GBP/AUD shorts look for key support breaks as BoE warns of long recession

•GBP /AUD declined on Thursday as Bank of England warned UK economy was heading for a long recession. •The BoE increased Bank Rate to 3% from 2.25% and warned that the British economy might not grow for another two years…

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FxWirePro: GBP/AUD shorts look for key support breaks as BoE warns of long recession
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•GBP /AUD   declined on Thursday as Bank of England warned  UK economy was heading for a long recession.

•The BoE increased Bank Rate to 3% from 2.25% and warned that the British economy might not grow for another two years

•GBP is under pressure since yesterday as Federal Reserve also hiked rates by 75 basis points 

•Technical are bearish, daily RSI has turnednegative  , daily momentum studies 5,8  and 11 DMAs are trending down. 

•Immediate resistance is located at 1.7854(5 DMA), any close above will push the pair towards 1.8005(38.2 % fib).

•Immediate support is seen at 1.7695 (50 % fib) and break below could take the pair towards 1.7556 (Lower BB).

Recommendation: Good to sell  around 1.7760, with stop loss of 1.7920 and target price of 1.7650.
 

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