• GBP/AUD declined on Thursday as Australian dollar rose across the board after data showed the manufacturing sector in Australia continued to expand in September.
• The manufacturing sector in Australia continued to expand in September, and at a faster pace, the latest survey from Markit Economics revealed on Thursday. Manufacturing PMI score of 57.3.
• The pair is heading towards the 1.8742 (50%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 49, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.8863(38.2%fib ), any close above will push the pair towards 1.8960(Higher BB).
• Strong support is seen at 1.8777(21DMA) and break below could take the pair towards 1.8742 (50%fib).
Recommendation: Good to sell on around 1.8800, with stop loss of 1.8900 and target price of 1.8700
