We’ve waited all month for GBPAUD to clear a particular support level.
On March 4th I pointed out a 1,440 pip range that has contained the pair since September of last year.
At the time, GBPAUD was testing the range ceiling at 1.8720.
The pair ended up moving sideways for the next three weeks.
But things started to progress for sellers earlier this week. On Tuesday I wrote that GBPAUD was close to confirming a 500-pip opportunity.
Fast forward to Friday’s close, and you can see how the pair has cleared channel support on a daily and weekly closing basis.
That could be a big deal as we head into next week.
Keep in mind too that GBPUSD closed below a critical support level on Thursday.
That breakdown on the pound could help push an already vulnerable GBPAUD lower next week.
I’ll be keeping a close eye on the area between 1.8430 and 1.8470.
A retest of this (new) resistance area will likely encounter an influx of selling pressure.
And if sellers can follow through on Friday’s break, there isn’t much in the way of support until 1.7930.
You can see how this level has served as a pivot of sorts since December 2017.
There is a chance GBPAUD will return to the multi-month range support at 1.7280.
However, that may take several weeks or even months.
As for event risk next week, you’ll want to put the RBA rate decision and statement on your calendar.
Those events will take place on Monday at 11:30 pm EST.