GBPAUD Hesitating at Prior Resistance Level

OANDA:GBPAUD   British Pound / Australian Dollar
Price had been trending in a medium-long term bearish move that began in early May. Price steadily made lower highs and lower lows on the daily timeframe following typical bearish price action until mid September when price broke from the descending trendline . Price had a short pullback then broke through prior resistance levels, now turned support and started making higher highs and higher lows on the daily timeframe . We can now see that price is currently hovering at another key level (1.71) that provided heavy resitance and great support (when price was above the level). Price has tested this level twice in a span of a week, dropping sharply the first time and consolidating below it at the second time around. It is expected to hold unless we continue with strong bullish momentum in the coming week. Overall bullish on this pair but willing to wait for a strong close above 1.71 before aiming for the resistance zone shown.

BREXIT still looms over the strength of Pound pairs and many investors seem to be poised on waiting for the October review to take a stand on one side or the other. The meeting between European Union officials will be conducted to see how point of views and discussions have moved along. If there is sufficient evidence provided to bring forth new discussions then we could see another stall in final results. It highly hoped that EU officials will be approving so that UK-EU trade deals can start being formulated. If current Brexit issues such as EU citizen rights and Irish border get sorted out before the October review then there is a chance we may see a rise in the Pound, especially if a trade deal is put forth.
The Aussie on the other hand may appreciate on the back of RBA policymakers. Deputy Governer Debelle's speech led many to believe that their is increased untiy between the RBA and it's goverment as a whole. The RBA may be getting more respect and in turn more authority which will lead to greater free rein to act in Australia's interests.
it will break
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