• GBP/AUD declined on Monday as warnings of tighter UK lockdown measures weighed on sterling.
• The pair hit daily low at 1.7705, it was last down 0.14% at GMT 17:45.|
•The pair is approaching 23.6% retracement at 1.7628, a daily close below 23.6% fib will accelerate downtrend towards 1.7500 (Psychological level).
• From a technical viewpoint, the daily moving averages are pointing downwards, while the RSI is strongly bearish at 40.
• On the upside, Immediate resistance is located at 1.7748 ( 9 DMA), any close above will push the pair towards 1.7796 ( 38.2 % fib).
• On the downside, strong support is seen at 1.7628 (23.6% fib ) and break below could take the pair towards 1.7526 (Lower BB).
Recommendation: Good to sell around 1.7700, with stop loss of 1.7850 and target price of 1.7500.
