GBP/AUD has established a mid- to long-term downtrend producing new lower lows and lower highs. However, the pair broke above the resistance area near 23.6% Fibonacci and currently it is finding there support.
It seems there is a good probability for another correctional wave up after the pair bounced off 50% Fibonacci retracement level (S1) and at the same time 38.2% (R1) has not been tested yet. Besides, two downtrend trend lines are still untouched and it is likely that they will be tested in the near future.
Consider buying GBP/AUD while it is trading near S1 (2.0710) to target the R1 (2.1115) area. Stop loss should be placed well below S2 (2.0622), which is 61.8% Fibs.
Support: 2.0710, 2.0622
Resistance: 2.1115
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