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FxWirePro:GBP/AUD drops below 1.7600 level, heads deeper into bear territory

• GBP/AUD dipped on Wednesday  as  a relaxation of COVID rules in China boosted risk sensitive Australian dollar .

• The Australian dollar is linked due to its close correlation to and role as a proxy for China sentiment.

• GBP/AUD drops below the 38.2% fib, slide halts at the 1.7516 (23.6% fib),break below will accelerate towards  1.7400 level.

• Technicals are favouring bearish sentiment as RSI is at 35 and the pair is trading below   5,10 & 11-DMAs.

• Immediate resistance is located at 1.7838 (38.2% fib), any close above will push the pair towards 1.7909(14DMA)

• Strong support is seen at 1.7516 (23.6% fib)and break below could take the pair towards 1.7433 (Lower BB).

Recommendation: Good to sell  around 1.7590, with stop loss of 1.7720 and target price of  1.7500

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