Since the beginning of the year the currency lost more than 1.0% in addition last week fell more than 2.0% and made a phase change, shifting from a bullish to a warning phase.
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 but is still pointing upward on the other hand seems that the 50-week moving average may proving a dynamic support. The stochastic is showing a strong bearish momentum and crossed below the overbought zone.
Expecting a downward move to a weekly support at 1.6054 on a break below the previous week low at 1.6770 (scenario 1) however a bounce from the 2016 low at 1.6054 could push the currency pair back up to a weekly resistance at 1.7214 (scenario 2).