- GBP/AUD hit fresh 10-month lows at 1.9153 in Thursday’s trade and is currently trading a narrow range (1.9280/02) on the day.
- Price action has broken below channel base and has dipped below the weekly cloud.
- Momentum indicators on the weekly charts are converging with price action, downside bias seen.
- The sterling outlook remains fragile ahead of the June 23 Brexit referendum, and GBP will likely struggle to advance.
- The pair has retraced upto 38.2% Fib of 1.4381 to 2.23721 rise, and further downside upto 1.8377 50% Fib of 1.4381 to 2.23721 rise cannot be ruled out.
- Supports on the downside are aligned at 1.91/1.90/1.8828, while resistance are seen at 1.9340/1.9450/1.9604.
Recommendation: (Medium-term) – Good to sell rallies around 1.930, SL: 1.960, TP: 1.90/1.8830
The material has been provided by InstaForex Company – www.instaforex.com