GBPAUD overbought at Supply Zone
GBPAUD is has had a very strong run up to a significant level that has acted as an area of supply since August, with price only briefly breaking above this area once before quickly driving back down below it.
RSI is overbought (>70) on the 12H, 6H and 2H charts and but has just had it's first sign of rejection out of this area. Expect price to see a correction back down towards the rising trend line as a short term reversal shouldn't see much support until the 1.86800 area.
Alternatively, if this impulse continues and price breaks through this Supply Zone, we could expect price to push up to test the next key level around 1.91000 - 1.91600, at which point price will be further extended and would be primed for a short term reversal.
RSI is overbought (>70) on the 12H, 6H and 2H charts and but has just had it's first sign of rejection out of this area. Expect price to see a correction back down towards the rising trend line as a short term reversal shouldn't see much support until the 1.86800 area.
Alternatively, if this impulse continues and price breaks through this Supply Zone, we could expect price to push up to test the next key level around 1.91000 - 1.91600, at which point price will be further extended and would be primed for a short term reversal.
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