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FxWirePro:GBP/AUD gently bid, as conflicting factors limit downside

• 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.
 

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