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The British pound traded lower against the Aussie dollar recently and tested the 1.8076 support area. The Aussie dollar performed relatively better against a basket of currencies, including the British pound. The market sentiment was broadly favouring gains in the Aussie dollar, which ignited downside pressure in the GBPAUD pair. However, it looks like the pair is correcting in the short term and it is possible that it might head towards the 1.8210 level where sellers might appear again to protect the upside in the pair. There is no economic release lined up in the UK, which means any nasty move is unlikely today.

There is a monster bearish trend line formed on the hourly chart of the GBPAUD pair, which might act as a hurdle on the upside moving ahead. The pair recently managed to climb higher, but failed to clear the 61.8% fib retracement level of the last drop from the 1.8262 high to 1.8076 low. There is a chance that the pair might spike one more time from the current levels towards the mentioned bearish trend line. The most important point is that the 100 hourly moving average is coinciding with the same trend line, so the GBPAUD buyers could struggle around the 1.8210 level if reached. The hourly RSI just failed to close above the 50 level which is another bearish sign in the short term.

Alternatively, there is a chance that it might continue trading lower in the coming session. In that situation, the recent low of 1.8080 might come into play again.

Overall, one might consider selling rallies around the highlighted trend line.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com