GBPAUD is experiencing notable gains for the second straight day, having risen by around 120 pips so far on Friday. Earlier in the day, it also recorded a two-week high of 1.7733.
The RSI is rising in support of a positive short-term picture, while the stochastics are also projecting a bullish picture in the very short-term. Specifically in the case of the latter, the %K line has moved above the slow %D one and both lines are heading higher.
Further advances might meet a barrier around the 38.2% Fibonacci retracement level of the March 28 to June 5 downleg at 1.7818; the area around this also encapsulates the 1.78 round figure. Stronger gains would turn the attention to the region around the current level of the 100-day moving average at 1.7928.
On the downside, the range around the 23.6% Fibonacci mark at 1.7657 failed to act as a barrier on the way up earlier on Friday and might instead provide support to declines. In case of shaper losses, the 1.76 (the area around this also includes a bottom from around mid-March at 1.7598) and 1.75 handles may also act as support.
Despite the considerable upside movement lately, the medium-term picture is looking predominantly negative at the moment with price action taking place below the 50- and 100-day moving average lines. Should the positive short-term momentum remain in place for a while longer though, pushing prices roughly up to the 50% Fibonacci level at 1.7950, then the view for a bearish outlook would no longer be valid.
Overall, the near-term bias is positive, and the medium-term outlook is currently looking mostly bearish.
