• 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
