GBPAUD (break below) price forecast

9 Okt 2020

So, price is in a downtrend after an extended period of trending upwards. Price is currently trading around the 1.8000 support level. Price has failed to make higher highs this week as is indicated by downward sloping trendline. Since overall trend is to the downside, we can potentially expect a possible break of support and a continuation to the downside. However, considering that price has tested support at the 1.8000 level multiple times previously, I would not open an immediate sell position. I will look for sells only when price breaks and retests support which would have become resistance, and show additional confirmation of continuing to the downside, perhaps a candlestick confirmation. My first TP would be at the 1.78500 level and my second TP, should price continue downwards would be at the 1.77500 level.