FxWirePro:GBP/AUD extends drop, plunge to test a key fibo grows

• GBP/AUD declined on Tuesday as news of a one-month UK pandemic lockdown and mediocre PMI data weighed on GBP.

• Underlying trend remains bearish. A break below 1.8186 (50%fib) will spur fresh downward momentum.

• At GMT 17:52, the pair was trading 0.46% lower at 1.8218, lowest since 28th Oct 2020.
 
• Technical signals show the pair could lose more ground in the short-term as RSI is at 49 bearish, daily momentum studies 5, 9  DMAs are trending down.

• Immediate resistance is located at 1.8312 ( 38.2%fib), any close above will push the pair towards 1.9137 (23.6%fib).

• Strong support is seen at 1.8186 (50%fib) and break below could take the pair towards 1.8101 (55 DMA).

Recommendation: Good to sell below 1.8220, with stop loss of 1.8400 and target price of 1.8120