GBP/AUD hovers near the lower boundary of the trading range.
GBP/AUD has been trading in a consolidation area since February 19, with upper boundary the 35-month high of 1.8880 and lower boundary the two-month low of 1.8100. Currently, the price is edging slightly higher, with the short-term momentum indicators signaling a bullish bias. The RSI is pointing up in the negative territory, while the stochastic is moving towards the overbought area.
The 20-day simple moving average (SMA) near the 1.8305 resistance could halt upside movements ahead of the 40-day SMA at 1.8385. Crossing above this area, the buying interest could turn more aggressive, with the bulls probably targeting the 23.6% Fibonacci retracement level of the up leg from 1.7220 to 1.8880 near 1.8485.
Should the market change direction to the downside, support could initially emerge between 1.8100-1.8043, which overlaps with the 50.0% Fibonacci. Even lower, a move lower could find an obstacle at the 1.7990 level.
Concluding, investors should wait to see a drop below 1.8100 for bearish actions or a climb above 1.8880 for bullish orders.
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