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