The British Pound movement against the Australian Dollar has been constrained by a six-week descending pattern. The pair made a U-turn south after hitting the upper boundary of a channel down on April 30 and has since reached a three-month low level at 1.75.
The 55– hour simple moving average has been guiding the exchange rate down during the last two weeks. Meanwhile, the currency pair has reached the weekly S1 where the lower boundary of an ascending trend line is located.
Everything being equal, a breakout from the aforementioned trend line could be expected during the following trading session. If and when this occurs, it might find support at the weekly pivot point at 1.74.
