GBPAUD is advancing considerably today following the bounce off the 1.7860 support level and successfully surpassed above the 20- and 40-simple moving averages (SMAs) in the daily timeframe. Momentum indicators suggest that the market sentiment might get even better as the RSI is reversing back to the upside entering in positive territory. The stochastic also looks to be changing direction, moving up after the bullish crossover within the %K and %D lines.
Should the bulls drive the price higher, the next resistance is coming from the previous peaks of 1.8520, taken from the highs on January 25. A significant leg above this barrier would increase speculation that the uptrend continues and test the more than two-high year high of 1.8730.
Alternatively, if the price manages to turn lower again below the 23.6% Fibonacci retracement level of the upleg from 1.5725 to 1.8730, around 1.8015, nearby support could come from the 1.7860 hurdle. Below that, the area within 1.7575 – 1.7610, which encapsulates the 38.2% Fibonacci would be the next levels for investors to look for.
Overall, GBPAUD has been trading within an upside rally since October 2016, creating higher highs and higher lows during this period.
