• GBP/AUD initially declined on Monday on worsening energy crisis in Europe but recovered some ground after was Truss was named as UK’s next PM.
• Investors looked ahead to the appointment of Liz Truss as Britain's new prime minister against a deteriorating economic backdrop.
• Strong support is at 1.6878 (23.6%fib),a break below will encourage fresh selling and accelerate downtrend.
• Technical signals are bearish as RSI is at 37, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 1.6947 ( 5DMA), any close above will push the pair towards 1.7034(Sep 2nd high)
• Strong support is seen at 1.6878 (23.6%fib) and break below could take the pair towards 1.6827 (Lower BB).
Recommendation: Good to sell around 1.6930, with stop loss of 1.7050 and target price of 1.6870.
