GBP/AUD slips, could struggle until bullish cross confirmed.
GBP/AUD has declined considerably since it reached an almost three-year high of 1.8880 on Monday, sending the price until the 1.8530 support. The RSI is turning slightly lower approaching the 50 level, while the stochastic oscillator seems to be strongly bearish, as it is heading towards the oversold territory. However, the 20- and 40-simple moving averages (SMAs) in the daily chart are ready to post a bullish cross despite the latest bearish movement.
If the price continues to slip further, a rebound could come around the crossover within the SMA currently at 1.8440, but first needs to challenge the 23.6% Fibonacci retracement level of the up leg from 1.7220 to 1.8880 near 1.8485.
On the upside, the price could touch once again the 35-month high of 1.8880, while a successful climb above this barrier could increase bullish sentiment until the significant psychological barrier of 1.9000.
Overall, GBP/AUD seems to be in negative correction following the pullback on the 1.8880. However, if the price remains above the short-term SMAs, investors could turn their interest to the upside again.
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