GBPAUD has shifted sideways after a pullback from the multi-year peak of 1.9521. Directional momentum has evaporated, and the pair is approaching a supportive trendline drawn from the low of 30 July 2019.
The MACD is marginally above its red trigger line and barely below zero, while the RSI is at its neutral mark, both reflecting an unclear short-term direction. Noteworthy, is the 100-day SMA that has joined with the supportive trendline, and with the 200-day SMA, back a positive picture.
To the upside, initial immediate resistance could come from the 50-day simple moving average (SMA) at 1.8965 and nearby 1.9057 level, which is the 23.6% Fibonacci retracement of the up leg from 1.7560 to 1.9521. Next, the fresh high of 1.9155 could obstruct buyers from stretching towards the 1.9383 hurdle and multi-year peak of 1.9521. If buyers persist, the 1.9733 and 1.9875 highs from June 2016 could draw traders’ attention.
Alternatively, moving under the 20-day SMA at 1.8864, the 38.2% Fibo of 1.8772 and supportive trendline beneath – merged with the 100-day SMA – could apply significant upside pressure. Next, the swing low of 1.8650 could hinder sellers seeing the 50.0% Fibo of 1.8540 at the next trough. Diving down, the 1.8493 support and 200-day SMA at 1.8428 could halt further losses towards the 61.8% Fibo of 1.8309.
In brief, the short-term bias appears neutral-to-positive. Should the price hold above the trendline and break above 1.9155, it would revive a rally, realigning with the bigger positive outlook.
