GBPAUD reversed from 1st resistance, potential for further drop

Price has just reversed from our descending trendline resistance and 1st resistance at 1.78822, in line with our 61.8% Fibonacci extension. We could potentially see a further drop in price towards 1st support at 1.78035 where it coincides with our 61.8% and 161.8% Fibonacci extension levels. It is worth noting that the Stochastic indicator is also approaching the upper resistance level at 88.23 where it has reacted from before, in line with our analysis.

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