GBPAUD focus to the downside; testing 200-day moving average
|GBPAUD bias is to the downside after a break below the 50-day moving average and below the key psychological 1.7000 level on June 9.
Momentum oscillators are showing that the downside bias is gathering momentum. RSI is trending down and is below 50 in bearish territory, while MACD is also showing bearishness as it is below zero and falling.
Prices are currently testing the 200-day moving average at 1.6654. It is expected to provide support but a daily close below it 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).
To the upside, major resistance is provided by the psychological 1.7000 level. A break above this opens the way towards 1.7200 and 1.7500.From here, we could see a re-test of the high at 1.7650. This would bring about a bullish bias and a resumption of the uptrend from 1.5902.
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 likely remain intact. But the short-term bias is to the downside. Looking at the bigger picture, the pair has a neutral outlook.
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