The British Pound is trading against the Australian Dollar in the short term descending channel. The pattern formed in the result of the currency rate's break through the bottom trend line of the preceding ascending channel after the Pound's appreciation amid the release of data on the construction and services PMI. The traders should watch carefully this pair, as the gradually narrowing fluctuations indicate on formation of the symmetrical triangle. Accordingly, if the breakout occurs in the downward direction, the 23.6% Fibonacci retracement level of the 2016 high and low levels at 1.7096 most likely will be able to constrain the fall. However, if the breakout occurs in the upward direction, there will be no resistance levels that could keep the rate within the channel.
| Level | Rationale | Indicator | 4H | 1D | 1W | |||
| R4 | 1.7422 | Trend line | MACD (12; 26; 9) | Sell | Sell | Sell | ||
| R3 | 1.7409 | Upper Bollinger Band | RSI (14) | Neutral | Neutral | Neutral | ||
| R2 | 1.7401 | 55-period SMA | Stochastic (5; 3; 3) | Sell | Sell | Sell | ||
| R1 | 1.7362 | Weekly S1 | ADX (14) | Neutral | Neutral | Neutral | ||
| S1 | 1.7273 | Bottom Bollinger Band | CCI (14) | Neutral | Neutral | Neutral | ||
| S2 | 1.7232 | Weekly S2 | AROON (14) | Buy | Buy | Buy | ||
| S3 | 1.7202 | Trend line | Alligator (13; 8; 5) | Sell | Buy | Buy | ||
| S4 | 1.7190 | 200-period SMA | SAR (0.02; 0.2) | Buy | Sell | Buy | ||
| Aggregate | → | → | → |