Nick Nasad
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GBP/AUD - At Important Crossraod in Short Term

The GBP/AUD is at an important short-term crossroads.

  • The pair is currently retesting its very-short term resistance near 1.8350.
  • The pair has been in a short-term (3-session) downtrend after peaking at 1.8550, and if resistance holds here, then we may have another leg down in the pair, towards 1.8275, the lows established this week. A break of that area would open up the area just above 1.82.
  • However, in the bullish scenario, which would fit in with the general uptrend in this pair over the last 5-6 weeks, the pair would push above 1.8350, after which the pair is then likely to target the 1.8450 pivot and then last week's high.
  • The GBP continues to be supported by macro news, while the AUD has been beaten down by its data and RBA jawboning. 
  • My bias leans to the upside currently, but I will be watching the price developments around that 1.8350 area for further clues.