- Pound buoyed by surprisingly stronger UK employment data, GBP/AUD retraced from lows of 1.6335.
- UK unemployment rate fell to its lowest level in more than 40 years in June and average earnings recorded a slightly better-than-expected growth of 2.1% during the three months through June.
- Fading prospects of an early BoE rate hike action however likely to cap further gains.
- GBP/AUD trades with a bearish bias. Price action hovers around triangle base in the 'Symmetric Triangle' pattern.
- Break below 1.6360 (triangle base) could see further downside. Scope then for test of 1.61 levels.
Support levels - 1.6360 (triangle base), 1.6303 (July 27 low), 1.6276 (78.6% Fib retrace of 1.5902 to 1.7650 rally)
Resistance levels - 1.64, 1.6451 (20-DMA), 1.65, 1.6570 (61.8% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-capped-below-20-DMA-Pound-extends-BoE-induced-sell-off-838302) has almost hit all targets.
Recommendation: Good to go short on break below 1.6360 to go short, SL: 1.6455, TP: 1.63/ 1.6275/ 1.62
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -110.639 (Bearish), while Hourly AUD Spot Index was at 52.6429 (Neutral) at 1230 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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