• GBP/AUD declined on Monday, as re-escalation of US-China trade tensions weighed on the pair.
• At GMT 15:53, the pair was trading 0.35% lower at 1. 9334, lowest since May 1st. .
• GBP/AUD remains vulnerable, only a break and daily close above 1.9700 (38.2% fib)at 1.9700 will shift bias to the upside.
• Technically 21 day and 30-day momentum remains negative and RSI beginning to head down.
• Immediate resistance is located at 1.9547 (21 DMA ), any close above will push the pair towards 1.9700 (38.2% fib).
• Strong support is seen at 1.9310 (9 DMA) and break below could take the pair towards 1.9263 (5DMA).
Recommendation: Good to sell on rallies around 1.9420, with stop loss of 1.9600 and target price of 1.9250.
