• GBP/AUD initially rose on Tuesday, but reversed course as confusion about UK lockdown and pessimism about EU-UK trade talks weighed on GBP.
• GBP/AUD remains vulnerable, only a break and daily close above 1.9250 (23.6% fib) will shift bias to the upside.
• Technical signals are bearish as RSI is at 33, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, immediate resistance is located at 1.9151 (11 DMA ), any close above will push the pair towards 1.9250 (23.6% fib).
• On the downside, immediate support is seen at 1.8817 (Lower BB ) and break below could take the pair towards 1.8734 (300 DMA ).
Recommendation: Good to sell on rallies around 1.9000, with stop loss of 1.9310 and target price of 1.8700.
