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FxWirePro:GBP/AUD capped by the 50.0% fibonacci, good to sell on rally

• GBP/AUD declined on Wednesday   as markets turn towards highly anticipated interest rate cut by the European Central Bank in this week.

• Investors expect the European Central Bank on Thursday to cut the benchmark rate by 25 basis points to 3.75%.

• The pair is currently approaching resistance at 38.2%fib. A break and daily close below will accelerate further drop towards 1.9000 level.

• Technical are bearish, daily RSI is negative at 49, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.9183 (50% fib), any close above will push the pair towards 1.9253 (61.8% fib).

• Strong support is seen at 1.9110 (38.2%fib) and break below could take the pair towards 1.9010 (23.6%fib).

Recommendation: Good to sell on  around 1.9120, with stop loss of 1.9200 and target price of 1.9060
 

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