As a result of lasting since September 2015 declines GBPAUD reached an important support 1.59, where last October occurred response of demand. Increases did not last too long, and last week again we find ourselves in area of the said support, where once again there was bullish reaction. On weekly chart, we can see a bullish pinbar candle. We should also pay attention to the resultant formation of a double bottom, which could determine increases in the near future.

However, if declines will continue, and this level would be defeated, we would expect to test even the neighbourhood of level of 1.45.

GBPAUD Weekly

Looking at the daily chart we see that if current support would be rejected, the potential growth could even reach level of around 1.77 but first reaction of bears we can expect already in area of resistance 1.67.

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GBPAUD Daily

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