- GBP/AUD is extending downside after forming 'Double Top' at 1.80 levels.
- We see bearish divergence from price action on RSI and Stochs which adds to the bearish bias.
- The pair has slipped below 5-DMA and finds next major support on the downside at 20-DMA at 1.7569.
- A decisive break below 20-DMA could see drag upto 100-DMA at 1.7316.
- On the flipside, retrace and close above 5-DMA could see the pair re-test 1.80 levels.
- We see bearish invalidation only on decisive break above 1.80 levels.
Support levels - 1.7568 (nearly converged 20-DMA and 23.6% Fib), 0.7483 (50-DMA), 1.7351 (Jan 29 low), 1.7316 (100-DMA)
Resistance levels - 1.7726 (5-DMA), 1.79 (Dec 1 high), 1.80 (Double top)
Recommendation: Good to go short on rallies around 1.77, SL: 1.7750, TP: 1.76/ 1.7570/ 1.7485/ 1.7320
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