- GBP/AUD was rejected at session highs at 1.8036, slips lower to 1.7931 levels.
- Technical studies are biased lower. We see scope for further downside.
- Price action has slipped below 5-DMA, and is currently holding support at cloud base at 1.7936.
- Break below cloud bottom will see drag till 100-DMA at 1.7866. Violation at 100-DMA can see test of 38.2% Fib at 1.7612.
- On the flipside, breakout at 50-DMA will see resumption of upside in the pair.
Support levels - 1.7866 (100-DMA), 1.7612 (38.2% Fib), 1.7430 (200-DMA)
Resistance levels - 1.7978 (5-DMA), 1.8170 (50-DMA), 1.8240 (May 9 high)
Recommendation: Good to stay short on break below cloud bottom, SL: 1.80, TP: 1.7870/ 1.7615/ 1.75/ 1.7430.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -36.496 (Neutral), while Hourly AUD Spot Index was at 79.5874 (Bullish) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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