• GBP/AUD initially dipped on Wednesday, but recovered some ground as traders bought back British pound.
• The pair hovers below trendline at 1.9565. Lack of a sustained close above trendline hint renewed downside on the horizon.
• Technical signals are bearish as RSI is at 39, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9565 (Trendline), any close above will push the pair towards 1.9741 (11 DMA).
• On the downside, strong support is seen at 1.9420 (50 DMA) and break below could take the pair towards 1.9342 (Lower BB).
Recommendation: Good to sell around 1.9500, with stop loss of 1.9750 and target price of 1.9000.
