The GBP/AUD has broken a key support level only minutes after the RBA announced that the Cash Rate would remain unchanged at 3.25% instead of lowering it to 3.00% as expected. This gave the Aussie a boost and caused the GBP/AUD to drop 52 pips immediately after the announcement. Prior to the announcement, the pair had been resting on a strong support level at 1.5400 and the 50% Fibo level for the price action between May 23's high of 1.6185 and August 07's low of 1.4710. Additional support lies below the current price of 1.53443 at 1.5325 with an 88 pip technical vacuum to the next support level at 1.5325. With the breach of 1.5325 we will be looking for a much longer term target and could see this pair fall to 1.4900 or even 1.4700 in the days ahead. If the pair finds support at 1.5325 and reverses, look for resistance to step in at the precious support levels of 1.5366 & 1.5412 before hitting heavy resistance at 1.5500 again. A close above 1.5500 could indicate a bullish continuation is back on, but at this point my money is running with the bears since we have also closed below the Weekly 62 EMA.
Happy Trading!