GBPAUD might be done with its uptrend, as it completed a double top pattern and is starting to break below support. If this pushes through, the pair could fall by the same height as the formation or around 200 pips.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that bearish pressure is in play. Price is already moving below these indicators, which might hold as dynamic resistance on pullbacks.

However, stochastic is indicating oversold conditions or exhaustion among sellers. Turning higher would mean that buyers are ready to take over and possibly go for another bounce to the resistance at 1.7800.

RSI has some room to head south before reaching the oversold region, so selling pressure might stay in play for a bit longer.

There are no major reports due from the UK economy or Australia today, but it’s worth noting that the RBA recently hiked rates by 0.50% as expected. In contrast, the BOE has been taking a cautious approach when it comes to tightening, possibly at the expense of inflation.

Then again, many are also worried that the large increase in Australia’s borrowing costs might dampen household spending soon.

Risk sentiment could push this pair around in the coming days, especially with the FOMC minutes and NFP report due. Indications that the Fed is open to another round of large rate hikes might mean some downside for riskier holdings since higher borrowing costs could hurt growth down the line.

Meanwhile, the NFP report is expected to print a slower pace of employment compared to the previous months, possibly giving the Fed enough cause to rethink its rate hikes. If so, higher-yielding assets like commodities and commodity currencies could stand to benefit.