GBPAUD is trending higher inside a rising channel visible on the daily time frame. Price recently reached the top of the channel and bounced off the resistance, so a pullback to support might be due.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level is close to the channel bottom around the 1.7800 mark. The 38.2% level lines up with the mid-channel area of interest around the 1.8250 minor psychological mark and might be enough to keep losses at bay.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. These moving averages are also in line with the Fib levels to add to their strength as support.

RSI is still heading lower to indicate that losses might still be in the cards and the correction could keep going. Stochastic is pointing down but dipping into the oversold region to reflect exhaustion. Turning back up could confirm that buyers are about to return and push GBPAUD up to the swing high around 1.8900 or the channel top at the 1.9000 handle.

The pound has been under a lot of pressure as UK officials are still unable to come up with a Brexit plan. The third meaningful vote still resulted in a rejection of PM May’s transition deal, which could put the UK on track to leaving the EU without a deal by April 12.

Then again, an emergency EU summit is scheduled for April 10 so there could be room for a last-minute agreement. For now, parliament has seized control of the process and is due to vote on nine alternatives for a deal, which would then be up for an indicative vote.

Meanwhile the RBA statement is coming up and a shift to a dovish stance like most of its peers could also mean downside pressure on the Aussie.