GBP/AUD 1H Chart: Channel Down

Perhaps it is too early to claim that GBP/AUD is trading in a bearish channel, but there is a good chance for this become true.  In order to confirm this assumption GBP/AUD needs to recover in the nearest future from the support at 1.7857 up to 1.8147, where in turn the hypothetical down-trend resistance line merges with the 200-hour SMA. Apart from a formidable supply area, there is another argument in favour of a longer-term decline, namely the ‘sell' signals provided by the majority of the indicators on the four-hour and daily charts. However, we should be wary that the market sentiment is heavily bullish towards GBP/AUD—75% of positions are long and the remaining 25% are short.