• GBP/AUD strengthened on Tuesday as Australian dollar attracted sellers after RBA raised its cash rate by 50 basis points, but signaled it was not on a preset path for future rate hikes.
• In its fifth hike since May, the Reserve Bank of Australia (RBA) raised its cash rate to a seven-year high of 2.35%.
• GBP/AUD remains vulnerable, only a break and daily close above 1.7293 (50% fib) will shift bias to the upside.
• Technical are bearish, daily RSI is negitive at 48, daily momentum studies 30 and 50 DMAs are trending down.
• Immediate resistance is located at 1.7114 (38.2%fib), any close above will push the pair towards 1.7182 (30DMA).
• Strong support is seen at 1.7000(Psychological level) and break below could take the pair towards 1.6911(23.6%fib).
Recommendation: Good to sell around 1.7100, with stop loss of 1.7230 target price of 1.7000
