GBPAUD turned bullish in the short-term after the pair jumped over 3% on Tuesday to rise above the 200-day moving average. The market has since had a daily close above the key 1.7000 level, which is now acting as support.
The next target higher is the key 1.7200 level that was tested in January. But in the near-term, consolidation is expected as the RSI is above 70, which indicates that the market has reached overbought levels.
The break above key technical levels at the 200-day moving average and the 1.7000 level give the pair a short-term bullish bias. But a move above 1.7200 is needed to shift the medium-term outlook which is more neutral.
A daily close below 1.7000 support would turn the focus towards 1.6680 (200-day MA support) and a further decline from here would negate the current short-term bullish bias.
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