GBP/AUD eases below 38.2% Fibonacci; bearish correction in the near-term.
GBP/AUD rebounded after touching 11-month lows at 1.1720, near the 50% Fibonacci retracement level of the up-leg from 1.5725 to 1.8730 on December 3. A week later though, the pair is reversing lower again, back below the 38.2% Fibonacci, with the RSI suggesting a further weakness to come in the short term; the indicator returned to the bearish territory after failing to break above its 50 neutral level. On the other hand, the MACD keeps gaining ground above its red signal line, supporting that the pair may resume upside. Yet as long as the index holds negative, downside movements are more likely.
If the price manages to regain today’s losing ground, the pair could challenge again the 1.7745 obstacle. An upside penetration of this barrier could drive the market until the 1.7820 resistance, registered on November 21. More advances could meet the 23.6% Fibonacci mark of 1.8015.
Alternatively, if the pair continues to lose below the 38.2% Fibonacci of 1.7575, support could be found at the eleven-month low of 1.7220. The next stop for investors to have in mind is the 1.7090 mark, reached on January 11.
To sum up, GBP/AUD is in bearish correction mode today, but if it continues this tendency breaking the bottom at 1.7220, the long-term outlook would turn even more bearish.
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