• GBP/AUD initially gained on Thursday but reversed course after Bank of England predicted a sharper rebound in the British economy in wake of easing COVID-19 restrictions.
• GBP/AUD struggled to digest the BoE announcements, initially gaining on the bond-buying slowdown and then reversing course.
• At GMT 18:16, the pair was trading 0.45% lower at 1.7858. The cross pairs bearish bias is set to strengthen, likely to drop towards 1.7780
• Technical signals are bearish as RSI is at 44, daily momentum studies 5,9,11 DMA’s, are trending down.
• Immediate resistance is located at 1.7907 (10 DMA ), any close above will push the pair towards 1.7932 (50%fib).
• Strong support is seen at 1.7825 (38.2%fib) and break below could take the pair towards 1.7788 (Lower BB).
Recommendation: Good to sell around 1.7890 with stop loss of 1.7950 and target price of 1.7780.
