• GBP/AUD strengthened on Monday as faster carry out of COVID-19 vaccinations across Britain and lessening assumptions for negative interest rates boosted sterling.
• Traders will watch this week PMI data for the United Kingdom, along with data on the labour market, infaltion and retail sales.
• GBP/AUD remains vulnerable, only a break and daily close above 1.8250 (61.8% fib) will shift bias to the upside.
• Technical are bearish, daily RSI is negative at 49, daily momentum studies 14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.8020 (21DMA ), any close above will push the pair towards 1.8095 (61.8%fib).
• Strong support is seen at 1.7975 (50%fib) and break below could take the pair towards 1.7858(38.2%fib).
Recommendation: Good to sell on around 1.8020, with stop loss of 1.8100 and target price of 1.7920
