Following a tight consolidation phase, GBPAUD has broken the bullish TL that originated from late-2017.
With a test & rejection of the consolidation from underneath as well as a new lower-low, we have confirmed bear-bias.
A counter-TL has brought price back to a key daily level that held as resistance late 2017 / early 2018 & was used as support for a bounce more recently before failing shortly thereafter. This would be an ideal location for a lower-high to be set & for price continuation to the downside.
Downside Targets:
(1) Weekly Level around 1.7600
(2) Previous Lower-Low circa 1.7400
(3) Daily Level circa 1.7100
Although 1.7600 is a crucial weekly level, a lot of remaining Buy interest may have been eaten up in May & June as there was plenty of chop & consolidation around this level. If this is the case, 1.7400 is a clear target one. If open buy interest remains, another consolidation period could be in the mix around this level. If we indeed begin to rally off of 1.7600, our sell bias can only be switched if price cracks the 1.7950 handle definitively, at which point we will be targeting the top of the consolidation area / weekly level around 1.8400.