GBPAUD has been heading considerably lower over the last four months, touching a new nine-month low of 1.7860. Currently, the price is edging slightly higher, approaching the 20-day simple moving average (SMA) and the MACD oscillator is moving above its trigger line. Also, the RSI is ticking up in the negative territory, suggesting a potential pullback.
A rally above the 20-day SMA could challenge the 40-day SMA near 1.8363 and the 1.8430 resistance. Slightly higher, the 23.6% Fibonacci retracement level of the downward wave from 2.0845 to 1.7860 at 1.8570 could be a crucial level for bulls before testing the 1.8650 barrier.
If the price slips below the nine-month trough of 1.7860 it, could move towards the 1.7560 support, identified by the low on July 2019. Breaking this level, the market could open the way for December’s 2018 low of 1.7220.
To sum up, GBPAUD is in negative mode in the daily timeframe, posting lower highs and lower lows, confirmed by the Ichimoku indicator and the 40-day SMA as well.
