FxWirePro:GBP/AUD capped by the 23.6% fibonacci, good to sell on rallies

• GBP/AUD recovered some ground after initially falling on Friday  as investors took heart from a slowdown in coronavirus-related deaths and new cases in Europe.

• The death toll from the virus appeared to be slowing across several European countries and the rate of new cases in Italy  the worst-hit country in Europe also dipped.

• The rallied strongly,but  lift stops after finding resistance at 1.8863 (23.6% fib).

• GBP/AUD remains vulnerable, only a break and daily close above 1.8863 (23.6% fib) will shift bias to the upside.

• Technical are bearish, daily RSI is negative at 30, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.8582 (5 DMA ), any close above will push the pair towards 1.8863 (23.6% fib).

• Strong support is seen at 1.8457 (Daily low) and break below could take the pair towards 1.8285 (Lower BB).

Recommendation: Good to sell on  around 1.8600, with stop loss of 1.8860 and target price of 1.9250