GBP/AUD’s rebound from 1.7412 accelerated this week on the back of steep risk pull back, and resilience in Sterling. The cross hits as high as 1.7944 so far and stays firm.
Immediate focus is now on 1.7923 resistance. Decisive break there will argue that fall from 1.8523 has completed. Rise from 1.7412 could indeed be correcting whole down trend from 2.0840 to 1.7412. In this case, stronger rally would be seen through 1.8523 to 38.2% retracement of 2.0840 to 1.7412 at 1.8721 in short to medium term.
However, rejection by 1.7923 will retain near term bearishness. Break of 1.7700 support will bring retest of 1.7412 low.
