• GBP/AUD initially gained on Monday as but gave up ground after data showed UK factory activity slows sharply in September.
• UK manufacturing activity slowed sharply in September, though less steeply than the month before when it shrank at the fastest rate in more than three years, a survey showed.
• The is pair heading towards 23.6% fib , as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 34, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9017 (5 DMA ), any close above will push the pair towards 1.9062 (38.2% fib).
• Strong support is seen at 1.8927 (23.6% fib) and break below could take the pair towards 1.8855 (Sep 29th low).
Recommendation: Good to sell on around 1.9000, with stop loss of 1.9100 and target price of 1.8900
