GBPAUD is looking increasingly bearish after the 50-day moving average crossed below the 200-day moving average in the past week. The near term bias is to the downside as RSI remains below 50.
The medium term outlook is also bearish as prices remain below the Ichimoku cloud and the moving averages. The pair is likely to stay in bearish mode unless it can cross back above the 50-day moving average. This could give it further upside momentum to target the 2.09 level – a previous resistance level that lies inside the cloud.
If prices continue to head lower, the December 2015 low of 2.0169 will be a critical support level to watch out for. Breaching this level would put the pair back on the downtrend that started in September 2015.
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