• GBP/AUD declined on Thursday as investor appetite to look for returns outside the U.S. currency helped the risk-sensitive Aussie burst higher.
• The pair, extended its drop to hit 1.6932 it was last down 0.22% on the day.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 34 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.7031 (5 DMA), any close above will push the pair towards 1.7100(38.2%fib).
• Support is seen at 1.6934 (Lower BB) and break below could take the pair towards 1.6849 (23.6%fib).
Recommendation: Good to sell on rallies around 1.6970 with stop loss of 1.7050 and target price of 1.6780.
