• 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
