GBP/AUD Price Analysis: Opening bid rallies into key resistance

• GBP/AUD bears have received a discount in the week’s opening bid. 
• Daily charts offer a compelling downside case for the downside. 

GBP/AUD has started out the week on the bid following a weekend of Brexit updates, but from a technical standpoint, it may have run right into the bear’s lair. 

The following is a top-down analysis that illustrates where the next swing trading opportunity might come from. 

Monthly chart

The price was rejected at a key trendline resistance on a restest. A monthly head and shoulders offer an opportunity to the downside on the lower time frames. 

Weekly chart

The weekly chart shows the price is testing a key double bottom area. 

Daily chart

The daily chart’s wick on the prior candle could well be filled in on the lower time frames in a downside extension. 

4-hour chart

The price has rallied on the open to test the 38.2% Fibonacci retracement level with some room until the 21-moving average and a 50% mean reversion that meets higher volume nodes. 

Resistance here could lead to an opportunity to the downside.