GBPAUD – Take a step back

GBPAUD (1H) – short term bearish bias

The pound sterling continues to retreat across the board ahead of the BoE meeting on Thursday. The RSI divergence following the price’s over-extension indicated that the upward momentum was losing speed. The break of the support level of 1.9280 was a major confirmation that there is a lack of optimism in the market prompting buyers to take profit. As selling pressures intensify, we may expect the pair to drop to the 20-day moving average near 1.9100.

Key support: 1.9100
Key resistance: 1.9360