GBPAUD focus is to the downside after a break below the 50-day moving average and below the key psychological 1.7000 level.
Oscillators are showing that the downside bias is gathering momentum. RSI is trending down and is below 50 in bearish territory, pointing to the possibility of further downside in the market. Other momentum indicators such as MACD and the stochastics are also showing a bearish bias.
Prices are currently holding above the 200-day moving average which will provide support at 1.6680. A break below would bring about more weakness in the market and accelerate a further decline. Next support would come into view at 1.6240 before 1.5902 (March 16 low).
As long as the market can stay above the 200-day moving average, the uptrend that took place from 1.5902 to 1.7650 will not change. But the short-term bias is to the downside and the medium-term outlook is neutral.
