The current formation of the GBPAUD currency pair shows the development of a downtrend that moves inside a large green channel. On the current chart, we see the price movement since August.
In the second half of August, the bulls reached the upper green line but did not break through it. After that, the market crept down. The last section of the chart describes the ascending yellow channel.
The downward movement is expected to continue in the direction of the lower green line. The downtrend will be confirmed if the bears can break through the support level of 1.686, located on the lower yellow wall. In this case, market participants will be waiting to continue the downward movement of the price to the next support level of 1.664, located on the lower green line. In the current situation, it is possible to consider opening short positions.
Alternatively, a bullish trend is expected to develop, where the bulls are aimed at the resistance level of 1.712, located on the upper green line. If this level breaks, the currency may rise to the resistance level of 1.727, located on the yellow channel’s upper wall. In the current situation, it is possible to consider opening long positions.
An approximate scheme of possible future movement is shown on the chart. A rebound is possible, but at the moment seems unlikely.