GBPAUD opened the day with a significant negative gap, reaching a new eleven-month low around 1.7250. The MACD is warning that further losses could follow up as the indicator keeps losing momentum below its red signal line, however with the RSI being ready to cross below 30 into oversold area, chances for a rebound are running high.
A significant leg lower would violate the 50.0% Fibonacci of 1.7223, probably hitting support at 1.7090, taken from the low on January 11. The next stop for investors to have in mind is the 1.6900 mark, reached on November 2017.
However, if the price manages to regain today’s losing ground, the pair could challenge again the 1.7470 obstacle. An upside penetration of this barrier could drive the market until the 38.2% Fibonacci retracement level of the upleg from 1.5725 to 1.8730, near 1.7575. More advances could meet the 20-day simple moving average (SMA) currently at 1.7717.
To sum up, GBPAUD seems to be in bearish correction mode, but if it continues this tendency could shift the long-term upside outlook to a more negative one in the long term.
