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FxWirePro: GBP/AUD sinks to six-month low with plenty more downside potential

• GBP/AUD slipped to hit six-month low on Wednesday as softer than expected UK inflation data weighed on pound . • Annual consumer price inflation in the United Kingdom decreased to 3.9% in November from 4.6% in October,…

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FxWirePro: GBP/AUD sinks to six-month low with plenty more downside potential
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• GBP/AUD slipped to hit  six-month low on Wednesday  as softer than expected UK inflation data  weighed on pound .

• Annual consumer price inflation in the United Kingdom decreased to 3.9% in November from 4.6% in October, the worst rate since September 2021.

• The pair hit daily low at 1.8728  and was last trading at 1.7044 (17:49 GMT) .

• A daily close a below  23.6% fib support  will further improve downside bias , and open the possibility of a drop towards  1.8600 level.

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is strongly bearish at 33.

•   Immediate resistance is located at 1.8843(38.2% fib), any close above will push the pair towards 1.8903(Dec 19th high).

• Strong support is seen at 1.8679(23.6% fib ) and break below could take the pair towards 1.8603(July 6th low)

Recommendation: Good to sell around 1.8740, with stop loss of 1.8800 and target price of 1.8610

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