- GBP/AUD trades largely unchanged on the day, currently at 1.6834 levels.
- The pair edged higher from session lows at 1.6781, holds 38.2% Fib support.
- We see back-to-back Doji formations at lows which raises doubts on continuation of downtrend.
- Technical studies are still bearish, we see scope for downside intact.
- Break below 38.2% Fib will see further drag, test of 200-DMA at 1.6656 then likely.
- On the flipside, close above 20-DMA at 1.6870 will see bearish invalidation.
Support levels - 1.6738 (38.2% Fib retrace of 1.61625 to 1.71676 rally), 1.6656 (200-DMA), 1.6559 (50-DMA)
Resistance levels - 1.6864 (5-DMA), 1.6870 (20-DMA), 1.6930 (23.6% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-Bearish-divergence-on-RSI-and-Stochs-raises-scope-for-downside-in-GBP-AUD-go-short-on-break-below-5-DMA-at-16933-916407) has hit all targets.
Recommendation: Book full profits at lows. Watch out for break below 38.2% Fib to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -101.747 (Bearish), while Hourly AUD Spot Index was at -45.0237 (Neutral) at 1130 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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