NAB discusses GBP/AUD technical outlook and flags a medium-term bearish setup in the making, with a confirmation signal upon a break of key support at 1.7350/00.
"Nine consecutive down weeks and the break below the previous double top around 1.80 confirm an impulsive bearish shift in price.
Initial support levels found at 1.7350/00 (lower weekly Bollinger band / 50-week MA) have held to date. A weekly close below 1.7362 will target a far deeper multi-week correction," NAB argues.
Upon the confirmed break of initial support at 1.7350/00 we target a challenge of MT trend support at 1.67/1.68 on a multi-month basis," NAB adds.