Overview: The price is moderating following Brexit -induced Sterling weakness. The path makes its moves towards the downside in the market and we can expect more downside extension. The British pound declines by 1.86% against the Australian Dollar since December 1. The currency pair was pressured lower by the 200- period simple average. As for the near future, the bear creates its bearish momentum in the market. Bearish traders are likely to target 1.7600 level during the following trading session. However, meanwhile, bears are creating forces in the market and taking the market towards the south side in the market.
The pair is showing strong Impressive bearish looks in the market. The downtrend is in a speed and expected to continue lower. The pair remain in control as long as the price will get below the resistance point. Bears will seek out prior structure towards the downside extensions in the market. Sellers can for sell in the market due to pair shows its lower side formation in the time while.
Technical Analysis: From the technical point of view, we can say that market is creating the sell signals and hence give the opportunity to the traders to set on the sell-side. the odds are in favor of the bears. according to the market in the daily chart, we can say that price is going towards the downside in the market and the indicators are also supporting the price patterns. The RSI is also below the 50 levels and creating the bearish signals also, but we can say that market will not support the downside extensions for the longest time as they break the resistance level and will start rising but for the short term sell signals market is ready to give you profit. So, we can advise our traders to go for sale at a short-term basis.
The support of the pair is 1.7182 followed by 1.6873 and resistance is 1.7807 followed by 1.7943.
Trade Idea: We can conclude from the outer look that the trader will go for sell 1.7650 and target will be 1.7531-1.7398 and stop loss will be 1.7909.
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