GBP/AUD Could Be Planning to Form a Double Bottom Near 1.7800

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Updated: 11 August 2020

Hello traders! The GBP/AUD downtrend remains valid as pair continues to produce lower lows and lower highs. During the past several trading days, prie has cleanly rejected the 227.2% Fibs at 1.8341 and then formed a strong resistance area near this Fib level. The Fibs itself was applied to the last corrective wave down, where 50 Exponential Moving Average was rejected. Not only it provides potential resistance level, but also a potential downside target.

Currently, the price has stuck between 50 and 200 Exponential Moving Averages, although the probability remains in favor of the downtrend. Perhaps break below the 500 EMA will confirm yet another downside wave, which can price might test 1.7832 level.

This support is confirmed by 327.2% and 78.6% Fibs applied to the current corrective wave up. At the same time in corresponds to the average-price downtrend trendline and the downside target could be reached within the next 7 trading days.

Bias: Strongly bearish while below 1.8400

Potential Resistance Zone: 1.8300 – 1.8400

Potential Targets: 1.7833

Have a profitable trading!