FxWirePro:GBP/AUD attracts selling interest, vulnerable to more downside

• GBP/AUD declined on Monday  as a solid report on Australian retail sales boosted Australian dollar.

• Data showed retail sales rose 0.9% in September from August, better than analysts' expectations for a 0.3% increase and an upwardly revised gain of 0.3% for August.

•The pair dropped to test 23.6% fib support. A break under  would unmask 1.8950 level .

• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 42.

•Immediate resistance is located at 1.9143(5DMA ) , any close above will push the pair towards 1.9167(38.2% fib).

• Immediate support is seen at 1.9018(23.6% fib ) and break below could take the pair towards 1.8910(Oct 2nd low ).

Recommendation: Good to around 1.9080 , with stop loss of 1.9180  and target price of 1.8980.