• GBP/AUD has extended in an upside correction deep into resistance territory. 
  • A downside continuation from the W-formation’s neckline could be on the cards. 

Further to the prior analysis, GBP/AUD Price Analysis: Bears in control and seek break of 4-hour support structure, the bulls managed to escape the grip of the bears.

The price extended in the correction to a 61.8% Fibonacci retracement where resistance would now be expected to finally hold off the bulls. 

The following is a top-down analysis that offers a case for both the bulls and the bears, with a bias leaning towards the bears. 

Monthly chart

Weekly chart

Alternatively…

The market could continue to melt in a bearish extension following the recent retracement.

Daily chart

Downside continuation…