GBP/AUD sellers threw the pair into overdrive after hitting a wall of resistance near 1.70261 on the one-hour chart, which put it on the back foot. The pound sterling has fallen back below Thursday's lows against the Australian dollar as bearish sentiment has intensified, with bears testing the 1.69757 barrier. There is a chance that if they manage to break through this level, the price may continue to fall towards 1.69620. There is a possibility that the market can be sent even lower if this hurdle can be decisively broken, with more sellers aiming at 1.69224 and 1.699469.
Alternatively, if buyers see the price in the range of 1.69757 as sufficiently attractive to step into the market, then this level may act as a support, holding the pair in the vicinity of the 50-EMA. It is also possible that buyers will find another opportunity to challenge the 1.70261, aligned with the 200-EMA.
According to the short-term momentum oscillators, selling pressure is picking up, with the RSI pulling out of the neutral zone and stepping into the selling area. In addition, shrinking MACD bars are also a sign that buying pressure is waning. While, momentum has not yet confirmed the bearish bias as it oscillates above the 100-level.
Discover ideal profit opportunities for your everyday trading with the help of our in-depth technical insights comprised of facts, charts and trends.