FxWirePro: GBP/AUD short had control, kept It after RBA minutes

19 December 2023, 18:45

• GBP/AUD declined on Monday as  hawkish RBA rate outlook boosted Australian dollar against pound .

• The minutes of the Reserve Bank of Australia's December policy meeting revealed that the central bank contemplated raising interest rates but chose to wait for additional evidence on inflation.

• A daily close a below 23.6% fib support will further improve downside bias , and open the possibility of a drop towards 1.8750 level.

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 39.

•  Immediate resistance is located at 1.8883(38.2% fib), any close above will push the pair towards 1.8955(50% fib).

• Strong support is seen at 1.8806(23.6% fib ) and break below could take the pair towards 1.8758(Nov 3rd low)

Recommendation: Good to sell around 1.8860, with stop loss of 1.8960 and target price of 1.8780