GBPAUD jumped to a 2-week on Monday to reach 1.9732 after a successful break above the 50-day moving average which was previously acting as resistance. Prices also rose above the 50% Fibonacci retracement level of the rise from 1.8292 to 2.0533. This level lies at 1.9408.
The market is now testing the 38.2% Fibonacci level at 1.9672. The daily momentum shows potential for more upside as the RSI has popped above the 50 level into bullish territory. A successful daily close above the 38.2% Fibonacci will open the way for a rise towards the 23.6% Fibonacci at 2.0000. Prices would need to break above this level to shift back to a more bullish bias and to see a resumption of the uptrend that started from 1.8292 to 2.0533.
Alternatively, a fall below the 50% Fibonacci would see a retest of last week’s low of 1.9033 and a greater risk for further downside moves towards the April low of 1.8292.
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