• GBP/AUD slipped lower on Wednesday as improved risk appetite and higher oil prices drove capital flows to Australian dollar.
• Oil was supported by weekly data that showed U.S. fuel demand holding at record highs.
• The is pair heading towards the 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bearish as RSI is heading down , daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.8900(38.2%fib ), any close above will push the pair towards 1.8926 (5DMA).
• Strong support is seen at 1.8815(23.6%fib) and break below could take the pair towards 1.87601 (Lower BB).
Recommendation: Good to sell on around 1.8900, with stop loss of 1.8980 and target price of 1.8820
