GBPAUD remains under pressure and risk is still to the downside as prices continue to trade below the 1.7430 resistance level. The price had a strong sell-off following the rebound near the 1.8000 strong psychological level.
The short-term technical indicators are holding near their neutral levels. The RSI indicator is flattening near its 50 level, whilst the MACD oscillator has a slight upward movement below near its zero line. Looking at the daily chart, prices are trading within the 20 and 40 simple moving averages, creating a consolidation area.
Further losses should see the 38.2% Fibonacci retracement level at 1.7133 from October’s 2016 low of 1.5743 to December’s 2017 high of 1.7995 acting as a major support. A drop below 1.7995 would reinforce the bearish structure in the short-term and open the way towards the next key resistance level of 1.6890.
In the event of an upside reversal, the 1.7430 obstacle could act as a resistance barrier before being able to challenge the 23.6% Fibonacci retracement at 1.7463. A break above this level would shift the daily outlook to bullish as the price could have an aggressive rally towards the 18-month high of 1.7995.
