The British Pound has been driven by a strong downside momentum against the Australian Dollar since the beginning of August, and thus sending the currency pair to plunged by 537 base points. This bearish sentiment began on August 3, after the pair tested the 200-hour simple moving average and the weekly R2 near the 1.7783 mark and reversed south.
However, during the past few days, the exchange rate made a U-turn from a support cluster set by the combination of the weekly and the monthly pivot points near 1.7323.
Everything being equal, it is likely that the GBP/AUD currency exchange rate continues it bullish momentum until it retests the 200-hour SMA.
