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GBP/AUD at Key Short-term Support

The 4H GBP/AUD chart shows a GBP/AUD that has been consolidating after a late August push that spiked up to 2.2370. After that price has been holding below 2.21 for the most part. As far as support, we saw buyers at 2.1386 in late August. Now in mid-September, we are seeing another test of this consolidation support.

GBP/AUD 4H Chart 9/16


(click to enlarge)

If the 2.1380-2.1390 support area holds this week, there should be upside risk to 2.16 and then 2.18. These bullish targets are within the context of consolidation, and even a price top - If price starts holding under 2.18, we could be seeing topping action in GBP/AUD. If price pushes above 2.18 however the resistance around 2.21 should be back in play. 

Now, if price falls below 2.1803, topping action is a possibility. However, because the prevailing trend is bullish, we should limit the bearish outlook to the 2.0870-2.0875 support/resistance pivot area, especially if the daily RSI is near 40.

GBP/AUD Daily Chart 9/16
(click to enlarge)