• GBP/AUD initially gained on Friday but lost some ground as investors were cautious on fallout from debt-laden China Evergrande.
• The pair’s recovery stalled after finding resistance at 1.8873 (38.2%fib). GBP/AUD recent recovery attempts have been limited.
• Technical signals are mixed as RSI is bullish at 51, daily momentum studies 5 and 9 DMA’s are trending lower.
• Immediate resistance is located at 1.8826( 5DMA), any close above will push the pair towards 1.8873 (38.2%fib)
• Support is seen at 1.8752(50% fib) and break below could take the pair towards 1.8640 (61.8%fib).
Recommendation: Be on sidelines
