GBP/AUD seems to have found the bottom near the 1.8500 area where it
formed a double bottom. The pair has been ranging between the 1.85 and 1.88 levels since
the beginning of the month, but today the price has broken above the downtrend trend line; it could result in further correction up.
The Fibonacci applied to the trend line’s breakout point shows
that one of the targets – R2 (1.9000) – corresponds to the previously formed support/resistance and also is a psychological level.
Consider buying GBP/AUD on small pullbacks towards S1
(1.8830) to target R2 (1.9000). The stop loss should be just below S2
Support: 1.8830, 1.8750
Resistance: 1.8900, 1.9000, 1.9150
The material has been provided by InstaForex Company – www.instaforex.com