GBP/AUD 4H Chart: Channel Up

Although a week ago it seemed that GBP/AUD is going to breach the 200-period SMA, in the end the support managed to withstand the attack and rekindle demand for the Sterling. Right now the currency pair is testing the lower edge of the channel at 1.8761, which is likely to prevent any additional losses brought by the bearish retracement and send the price towards the rising resistance line at 1.9563. However, if the trend-line is broken, the dip could potentially extend down to the weekly S1 and the 200-period SMA. This scenario is shared by 69% of the market participants—they are currently holding short positions, reckoning that the rally is overstretched.