• GBP/AUD declined on Wednesday as Brexit-related risks, speculation about negative rates and one of the world’s worst COVID-19 death tolls weighed on British pound.
•The market has broken the 23.6% retracement at 1.8187, a daily close below which will accelerate downside towards 1.8000 (Psychological level)
• At GMT 18:36, the pair hit daily low at $1.8051, it was last down 0.16% on the day at 1.8164.
• Technical signals lean bearish as momentum studies the 5,10 and 21 DMAs trend south, while RSI is heading south at 19.
• On the upside, immediate resistance is located at 1.8187 (23.6%fib ), any close above will push the pair towards 1.8350 (5 DMA).
• On the downside, immediate support is seen at 1.8052 (Lower BB ) and break below could take the pair towards 1.8000 (Psychological level ).
Recommendation: Good to sell on rallies around 1.8160, with stop loss of 1.8370 and target price of 1.7900.
