GBP/AUD technical analysis
Rising iron ore prices and Brexit uncertainty sent GBP/AUD to a 9-month low today as the pair broke down in a +400 pip swoon.
Selling accelerated after the February low gave way and continue through the June low before finally finding support at 1.9501 and rebounding to 1.9578 as sterling sellers take a break.
Technically, shorts need to be wary of some kind of retracement back to the Feb low of 1.9886 before the next leg down.
In the bigger picture, there is now very little support until 1.9000/1.8981. I see value in selling a bounce as weakness becomes entrenched but at the moment, selling GBP/AUD is too risky.
