FxWirePro: GBP/AUD struggles to extend recovery, good to sell on rally

• GBP/AUD initially dipped  but regained some traction on Tuesday  as RBA's February meeting minutes and  China's big mortgage rate cut failed to draw much excitement from investors. 

• On Tuesday, the RBA discussed raising rates by a quarter-point but chose to keep them steady due to progress in inflation and unexpectedly rapid labor market loosening

• The PBOC slashed its five-year loan prime rate by 25bps, which is its biggest cut since the rate was introduced, in an effort to support China's property market.

• At GMT 20:16, the pair was trading up 0.12 percent  at 1.9264 recovering from daily low at1.9200 .

• Technical are bearish, daily RSI has turned lower, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.9322(38.2% fib), any close above will push the pair towards 1.9407(Feb  15th high).

• Strong support is seen at 1.9192 (50% fib) and break below could take the pair towards 1.9160(Lower BB).

Recommendation: Good to sell on  around 1.9270, with stop loss of 1.9380 and target price of 1.9200