GBPAUD has been giving up ground in the medium-term but managed to find significant support at the 1.8130 region in early November. Since then, the pair has been trending upwards, surpassing both its 50- and 200-period simple moving averages (SMAs) but still trading below the Ichimoku cloud.
The momentum indicators further reinforce the pair’s short-term recovery. The MACD histogram is above both zero and its red signal line, while the RSI is hovering in the positive area.
Should the price continue its ascent in the coming sessions, immediate resistance could be met at the 1.8693 region. Clearing this level would reinforce the resumption of the short-term uptrend, setting the stage for the 1.8768 barrier. Higher up, the price might encounter a tougher test at the 1.8885 hurdle, before buyers target the 1.8968 region.
On the flipside, if positive momentum fades, the price could fall towards the 1.8490 level that has provided both support and resistance on multiple occasions in recent months. A violation of this obstacle would turn the focus to 1.8425. Failing to find support at the aforementioned level, the price could then seek to halt its decline at 1.8335 or even lower at the 1.8254 barricade.
To sum up, GBPAUD has partially bounced back from its medium-term downtrend. A break above the 1.8968 region would erase the pair’s recent dip, while crossing below 1.8335 would alter the short-term picture back to negative.