Since the beginning of the year the currency lost more than 5.0% in addition last week lost more than 2.0% and is in a bearish phase since early January.
Last week the GBPAUD fell with a wide range and closed near the low of the week, also managed to close below the previous week low, which suggests a strong bearish momentum.
The currency pair is trading below the 10-week moving average that is now pointing downward and should act as a dynamic resistance. The stochastic is showing a weak bullish momentum although is below the 50 mid line.
Expecting an upward move to a weekly resistance at 1.7214 on a bounce from a Fibonacci extension at 1.5936 (scenario 1) however a break below 2016 low at 1.5789 could push the currency pair further down to a Fibonacci extension at 1.5153 (scenario 2).