GBPAUD suffered a very sharp decline in recent months, sinking to fresh 4-year lows. That said, the pair has rebounded and a double bottom pattern seems to have formed on the daily chart.
Momentum indicators on the weekly chart mirror the latest bounce in the price action, with the RSI bouncing off its 30 line and the MACD looking ready to cross back above its red trigger line.
If the bulls remain in the driver’s seat and manage to pierce above the 1.7800 region, which halted the advance several times lately, the next barrier to the upside might be the 1.8150 area.
Now in the case the bears wrestle back control, initial support to declines could be found near the 1.7400 level. If that’s violated, the focus would turn towards the 4-year low of 1.7200.
Overall, the long term trend in the pair is neutral. However, a potential drop below 1.7200 could change that.
