• GBP/AUD declined on Monday, as a new strain of the coronavirus in Britain and lack of progress on Brexit deal weighed on pound.
• Pound also weakened as Britain and the European Union were unable to reach a deal by a Sunday deadline set by the European parliament, with negotiations expected to continue on Monday.
• At GMT 18:00, the pair already trading lower on the day, extended its drop to hit $1.7591 daily lows, and was last down 0.5% on the day.
•GBP/AUD remains vulnerable, only a close back above 50 % fib at 1.7780, could upset the bearish order.
• On the upside, Immediate resistance is located at 1.7688(38.2 %fib ), any close above will push the pair towards 1.7761 (5DMA).
• On the downside, strong support is seen at 1.7585 (23.6% Fib) and break below could take the pair towards 1.7500 (Psychological level).
Recommendation: Good to sell on rallies around 1.7650, with stop loss of 1.7770 and target price of 1.7580.
