GBP/AUD 4H Chart: Channel Down

This currency pair is nearing the upper boundary of the channel down pattern. Despite the pair's ability to consolidate above a major cluster of resistances between 2.0326 and 2.0488, the future scenario is highly likely to include a correction lower from 2.07. Here the Sterling is expected to hit the weekly and monthly R1s, which are offering supply along with the pattern's upper edge. Nevertheless, the bearish case should be strengthened by the fact the market is still overcrowded with short traders, as 73% of all positions are bearish. By spiking above the 2.08 mark, GBP/AUD will be in a good position to reclaim both January and December high at 2.0984 and 2.1222, respectively.