Technical analysis
The GBPAUD pair has recently reached the upside target of an invalidated head and shoulders pattern, meaning that selling pressure could increase due to profit taking.
According to the RSI indicator the GBPAUD pair has formed large amount of negative price divergence and could correct back towards the 1.8500 level.
What the possible outcomes are
In our most likely scenario, the GBPAUD pair correct towards at least the 1.8500 level as profit taking starts and the negative RSI price divergence starts to be reversed.
Alternatively, the GBPAUD could advance back towards the 1.8690 level, and then start to correct back towards the 1.8500 level.
Key levels
Support 1.8500 1.8450
Resistance 1.8690 1.8760
