Hello traders! Today we will look at the GBP/AUD daily chart to see the big picture. We are not attempting to catch a small move but a major correction to the downside.
On the chart below we can see a clear rejection of the 261.8% Fibonacci retracement level at 2.0856. In fact, this was a 49-months high for the GBP/JPY. While strong correction to the downside would be very reasonable, current price action shows, that pair is right at 61.8% Fibs resistance. This level has been rejected cleanly on March 27. Today price attempting to break higher and it will be important to see the daily close.
If it will be a low 2.0341 level, the most likely scenario is a beginning of a strong corrective move down, which could bring the price as low as 1.8722 level, which is 88.6% Fibonacci retracement on the chart.
Bias: Sideways to bearish while below 2.0345
Potential Resistance Zone: 2.0345 – 2.0400
Potential Targets: 1.8722
Have a profitable trading!