• GBP/AUD declined sharply on Friday as the pair attracted sellers dovish Powell statement .
• Fed Chairman Jerome Powell stuck to his transitory narrative of inflation during his Jackson Hole speech, prompting markets to question whether tapering would begin anytime soon and possibly postponing view of normalizing interest rates.
• The is pair heading towards the 1.8739(61.8% 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 48, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.8848 (50%fib ), any close above will push the pair towards 1.8890 (21DMA).
• Strong support is seen at 1.8789(Daily low) and break below could take the pair towards 1.8739(61.8% fib).
Recommendation: Good to sell on around 1.8810, with stop loss of 1.8900 and target price of 1.8730
