On the GBPAUD four-hour chart, we can see that the sentiment changed after a strong growth impulse from the beginning of October. The price reached the resistance around 1.8700 and after a short fight the supply took over the initiative. It is currently located around 1.8340. This level in the past has stopped the price movements on this pair several times.
Retest of a significant level
From October 11, we are witnessing declines on GBPAUD. On Friday there was a break of support at 1.8340 and then its retest. The new week began with an upward gap that broke that level. The price, however, quickly went down below and on Tuesday morning we are dealing with another retest.
If this time there is a downward rebound, you can try to open a short position with the goal to support around 1.8000. There are up to 300 pips to earn. In the case of an upward scenario, another target for bulls is around the peaks from October 11 to 1.8700.
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