The GBP/AUD pair has touched down at the 1.4860 area, a price area not touched since February of this year and a level that has provided strong support many times in the past 12 months. This will make it the third time in 12 months that price has tested this level and the potential for the pair to form a triple bottom formation is quite high. The Aussie Dollar has been Bullish for the better part of 9 weeks and some feel it is time for a correction. If the Aussie Dollar cannot continue its Bullish ascent against other majors, this pair will indeed bounce and give us the triple bottom formation sending prices higher once again on the GBP/AUD. Key support is at 1.4900, a price that many trading days have either opened or closed at for the pair and is combined with the Weekly S1 at 1.4915. Yesterday the Daily Chart printed a perfect Pin Bar Reversal on this key support level and is a good indication that price might reverse. If it does indeed turn around and begin climbing, look for support at the recently broken resistance level of 1.5406 - 1.5064 which happen to be the Weekly & Monthly Pivots as well. The next level of resistance will be at 1.5125 and 1.5173 beyond that. If price breaks the tail, or low of yesterdays trading, we will possibly see a Bearish continuation to the next key support levels of 1.4755 & 1.4570, the latter being just shy of the all time low at 1.4548.
Happy Trading!