GBPAUD has remained on a bearish footing from the yearly highs achieved in March. The recent bearish divergences on the momentum indicator hint at further downside.
Currently, the pair is attempting to reach the 1.81 area. Resistance could be evident as prices are looking to touch and then be engulfed by the Ichimoku cloud.
The 23.6% level was the previous resistance area of the 2.0858/1.7480 Fibonacci leg. Since then, a decline has seen the pair fall below 1.75.
If prices can bypass resistance at the cloud, then a move back to test 1.83 could be likely. However, exhaustion in momentum could see another fall to recent lows.
A short-term outlook shows that prices are trading within an ascending channel. A false attempt to break out of the upper channel has seen two more attempts to the 1.79 level.
The divergence on the momentum indicator eyes a move to the median regression. This is the confluence of the 23.6% of the 1.7481/1.7871 Fibonacci leg.
Should we see no bounce on the said level, then prices could be expected to test the lower channel once again. The 61.8% will be the next target as a break out of the ascending channel will then be clear.