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  • GBP/AUD consolidates between key structures on the monthly, weekly and daily chart. 
  • Bears looking for prospects below daily support for confirmations. 

GBP/AUD has printed a long wick within a monthly right-hand shoulder of the Head and Shoulders.

This wick is expected to be filled-in on lower time frames which could equate to a medium-term bearish breakout. 

The following is a topdown analysis starting from the monthly chart, then weekly and daily. 

Monthly chart (i)

At this juncture, the price has been building a right-hand shoulder which could result in a break below the current support structure. 

Monthly chart (ii)

If there is not an immediate upside move back to the counter trendline, the wick will be filled in on a lower time frame. 

Weekly chart

The above is the price action within the wick which meets a fresh resistance structure.

If this holds, there are the prospects of a downside breakout. 

Daily chart

The daily chart is somewhat more convincing on the downside but there is little to be done until the support structure is broken at which point the 4-hour chart can be monitored for a bearish technical environment.