Since 2013 GBPAUD moves in an upward trend. However, since mid-August the price didn’t set new high, but new lows were set. Last week there was a test and temporary breakdown of support at 2.0800 level after which there was a rebound. Rebound isn’t dynamic and in next few days we can observe attempt of permanent break below that support. Nearest resistance for demand are: 2.0930, 2.1100 – 2.1140. It looks more interesting in the bigger time-frame.
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Wider view, time-frame D1
At time-frame daily there is head and shoulders pattern which were formed from July to November 2015. It is a trend reversal formation and in this particular case it should start new downward trend. In head and shoulders pattern position should be open when neck line was break below (orange line at chart). Also, you can wait until the neck line will be tested from bottom and open short position after that. The nearest support below the neckline is at 2.0600.
