GBPAUD has recorded extreme losses during the past few weeks, reaching a 12-month low at 1.7731. Since then the pair has witnessed a minor rebound as the negative pressures seem to be cooling off. However, the 50-day simple moving average (SMA) looks ready to cross below the 200-day SMA, reinforcing the thesis of a sustained bearish outlook.
Short-term momentum indicators reflect a mixed picture as the RSI is steady below its 50 neutral mark. Nevertheless, the MACD has recently crossed above its red signal line despite being below zero, which indicates that the negative momentum in the price might be fading.
Should the negative pressures persist, initial support might be found at the March 2021 support at 1.7810, before sellers target the 1.7731 hurdle. Crossing below the latter could intensify selling pressures, opening the door towards the February 2021 low of 1.7685.
On the contrary, if the bulls manage to break above the 1.8121 level, the next line of resistance might be the December low at 1.8385. Crossing above this point could then pave the way towards the 1.8530 barrier, before buyers eye the 200-day SMA currently at 1.8617.
In brief, despite the recent uptick of the past few trading sessions, the overall outlook for the pair remains bearish. For sentiment to change, buyers would need to drive the price above the 200-day SMA.
