• GBP/AUD dipped on Wednesday as a deteriorating UK growth outlook weighed on sterling.
• UK manufacturing activity expanded in May at the weakest rate since January 2021, adding to a string weak economic reports that left sterling vulnerable .
• A close below 1.7344, the 23.6% fib, would increase downtrend towards 1,7200 level .
• Technicals are favouring bearish sentiment as RSI is at 38 and the pair is trading below 5, 9 & 11-DMAs.
• Immediate resistance is located at 1.7512(5DMA), any close above will push the pair towards 1.7591 (38.2% fib)
• Support is seen at 1.7344 (23.6% fib) and break below could take the pair towards 1.7193 (May 5th low).
Recommendation: Good to sell around 1.7410, with stop loss of 1.7480 and target price of 1.7280.
