GBPAUD for last two weeks fell in the support area of 1.6720 – 1.6700. Finally yesterday the price reached the level of 1.6720, and moreover Monday quotations were completed without any lower wick. This gave a clear indication for bears for Tuesday that even such an important level is not defended by bulls. On Tuesday, the downward movement continues, and GBPAUD was at the lowest level in last 3 years.
If it will break the support area of 1.6720 – 1.6700 (now GBPAUD is 20 pips below the support) next major support is at the level of 1.6300. This gives the potential for downward movement equal to as much as 400 pips and it does not have to be the end of declines. However, even if any pull-back occurs we should expect it will be short-term , because the weakness of demand seen in the chart GBPAUD is clear as day.
