GBPAUD has marked yet more higher lows since early-November as positive forces linger. Moreover, the pair is trading above its 50- and 200-day simple moving averages (SMA), reinforcing its overall bullish outlook.
Short-term momentum indicators are reflecting a mixed picture as the RSI is hovering above its 50 neutral mark. However, despite being above zero, the MACD is found below its red signal line, which indicates that positive momentum might be fading.
Should the bulls maintain control, the August high at 1.9153 might be the first line of resistance, before buyers shift their attention towards the 1.9220 hurdle. Crossing above the latter could strengthen the pair’s positive momentum, sending its price to test the March 2020 low at 1.9288.
On the flip side, initial support might be found at the congested region which includes the 1.8960 and 1.8920 obstacles, before sellers eye the area which includes the 1.8800 barrier and the 50-day SMA currently at 1.8770. Crossing below the latter open the door towards the 200-day SMA currently at 1.8600. A break below this point could turn the fortunes around for the pair, sending the price to test consecutively the 1.8527 and 1.8385 hurdles.
In brief, the overall outlook for the pair remains bullish. For sentiment to change, sellers would need to break below the 200-day SMA.
