• GBP/AUD initially dipped but recovered some ground on Monday as investors focused on talks over post-Brexit trade deal arrangement for Northern Ireland.
• GBP/AUD recovered to 1.8258 after hitting daily low at 1.8217, as shorts booked some profits after steep fall.
• GBP/AUD remains vulnerable, only a break and daily close above 1.8458(50% fib) will shift bias to the upside.
• Technical are bearish, daily RSI is negative at 41, daily momentum studies 5,11 and 14 DMAs are trending down.
• Immediate resistance is located at 1.8272 (14DMA ), any close above will push the pair towards 1.8348 (38.2%fib).
• Strong support is seen at 1.8217 (23.6%fib) and break below could take the pair towards 1.8148 (Lower BB).
Recommendation: Good to sell around 1.8260, with stop loss of 1.8370 and target price of 1.8200
