GBP/AUD has been in a bearish trend since last August and the price has made lower lows since then. Currently, the price is making a correction after dropping to the 1.85893 level. The price is likely to retest the 1.90582 resistance level before dropping further.

The 1.90582 is a major resistance level that has also proved strong support in the past. I am expecting the price will continue its bearish momentum after retesting this level.

I am considering the 1.90582 resistance level for short entry and my target for this trade is the 1.85890 support level. There is also a bearish order block and 0.38 Fibonacci level around the same level.

The Non-farming payroll (NFP) data will be published on the US dollar today, if the data turns out positive the price of GBP/AUD will go up and when the USD strengthens the Australian dollar gets weaker. Conversely, if the data turns out negative for the US dollar the price of GBP/AUD will drop.

However, the price of GBP/AUD is likely to remain stable in the coming week as there are no major fundamental events that could impact the price of GBP/AUD substantially.

• The price of GBP/AUD  is likely to drop further after retesting the 1.90528 resistance level.
•  The price is likely to drop to the 1.85890 support level in the coming days
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.2.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

The post GBP/AUD technical analysis: anticipating a short opportunity at 1.90582 resistance appeared first on Invezz