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FxWirePro:GBP/AUD drifts lower,could be on verge of a bigger drop

• GBP/AUD declined on Wednesday  as  drop was  influenced by much higher than expected UK borrowing data.

• British borrowing rose to its highest for any November since records began, reflecting higher costs for energy subsidies, data showed on Wednesday.

• Technical signals are bearish as RSI is turning lower, daily momentum studies ease, 5, 10 & 21 day moving averages conflict.

• Immediate resistance is located at 1.8145 (5DMA), any close above will push the pair towards 1.8268 (23.6%fib).

• Immediate support is seen at 1.8019(Daily low ), break below could take the pair towards 1.7916 (38.2%fib).

Recommendation: Good to sell around 1.8040 with stop loss of 1.8120 and target price of 1.7960

 

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