GBPAUD has risen inside of a channel since September 2017, after making a higher low on the monthly time frame.
Price currently sits at the bottom of the channel, which also happens to be a role reversal/horizontal level which used to be resistance and should now act as support. Further to this, we are already at the monthly S2 pivot 7 days into the month. However, I do exercise some caution with this months pivots for GBPAUD, as they are extremely tight due to being range bound for all of April.
Price is currently approaching the weekly central at 1.8061, and I’d like to see it fall off that level and re-test the channel bottom again. This would create a nice base out/double bottom scenario which should attract the bulls. We’ve got the BoE this week too which may offer some opportunities in this pair.
The obvious upside target for a longer term trade would be the channel top at 1.8800. Stops just below 1.7900 will protect the channel and horizontal support levels.