GBP/AUD has been on a down-move since the pair reversed south on the 27th of April. GBP/AUD continues to hold to its downwards moving trendline taken exactly from the previously mentioned date. We could see a bit of retracement to the upside, but the near-term sentiment is still bearish.
As long as the aforementioned trendline is intact, we will stick to the downside potential. A break of yesterday’s low of around 1.7390 could take the pair towards the next good level of support at the 1.7265 zone. If that area does not hold, then we could see a move towards the 1.7100 level.
Certainly, before hitting all the aforementioned levels, GBP/AUD could make its way either towards the 1.7515 area and move lower from there, or the pair could test the downwards moving trendline and then move south again.
The RSI has bottomed below 50, while the MACD is below its 0 mark and trigger line, but shows signs of bottoming as well. These indicators support the case for a small recovery before the bears jump in again.
The alternative scenario could be the one where GBP/AUD finally breaks the aforementioned trendline and heads north. This would also mean that the pair has broken the 1.7670 resistance barrier and could be aiming for the 1.7750 mark or even the 1.7800 area.
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