The GBP/AUD exchange rate has collapsed since this year’s high at 1.8861. For more than a month, the pound has lost more than 760-pips to the Australian dollar, and yesterday the demand side entered the game again with strong momentum.
As can be seen from the daily chart below, GBP/AUD quotes have set a low around 1.8100. The price has been consolidating over this level for several days as indicated by the multiple inside bar pattern.
However, yesterday the buyers entered the game again, who managed to push the quotes up significantly, and the range of session was the highest this month. By the way, the price reached the key resistance zone at 1.8388 – 1.8413, where the abolition of 38.2% of all downward movement from this year’s maximum is met with the abolition of 61.8% downward movement from the peak of this month.
It is now essential how the quotations continue to be maintained. Maintaining the resistance area at 1.8388 – 1.8413 at day closures would provide a chance for a return to declines. Alternatively, overcoming this zone would reveal another resistance at 1.8569 – 1.8608.