• GBP/AUD slipped lower on Monday as Australian dollar rose after China left benchmark lending rates unchanged at a monthly fixing on Monday, matching expectations .
• China remains an outlier among global central banks, having loosened monetary policy to shore up a faltering recovery but further rate cuts would widen the yield gap with the United State.
• GBP/AUD drops below the 14 DMA, slide halts at the 1.9023 (23.6% fib),break below will accelerate towards 1.8950 level.
• Technicals are favouring bearish sentiment as RSI is at 45 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 1.9113(14DMA), any close above will push the pair towards 1.9165(38.2% fib)
• Strong support is seen at 1.9023 (23.6% fib)and break below could take the pair towards 1.8925 (Nov 3rd low).
Recommendation: Good to sell around 1.9100 with stop loss of 1.9250 and target price of 1.9020
