GBPAUD has been trending higher within an ascending channel formation, and the pair recently staged a sharp rally to test the channel top near the 1.9010 area before pulling back sharply.

Price is currently trading around 1.8930, suggesting that a corrective phase may be underway as bulls take a breather following the explosive move higher.

The Fibonacci retracement tool drawn from the latest swing low highlights several levels where buyers could be waiting to re-enter. The 38.2% Fib sits at 1.8934, which price is already testing as immediate support.

A deeper pullback could bring the 50% level at 1.8911 into play, followed by the 61.8% Fib at 1.8888, which aligns closely with the channel’s mid-section and could attract fresh buying interest. A larger correction could stretch all the way to the 100% Fib at 1.8813, near the channel bottom and the prior breakout area, which could be the line in the sand for the bullish setup.

On the moving averages side, price has surged well above both the 100 SMA and the 200 SMA, with the 100 SMA crossing above the 200 SMA to confirm that the path of least resistance is to the upside. The widening gap between the indicators reflects strengthening bullish momentum, and both could serve as dynamic support on any extended dips.

Stochastic has pulled back sharply from the overbought zone, reflecting exhaustion among buyers following the recent spike. The oscillator still has room to slide before reaching oversold levels, so the correction could have more room to run before bulls regain control.

RSI is similarly retreating from elevated levels with room to move lower, suggesting sellers could keep pressure on in the near term. If any of the Fibonacci levels manage to hold as a floor, however, GBP/AUD could resume its climb toward the channel top and beyond.

GBPAUD drew support form a less dovish BOE decision, during which policymakers voted unanimously to keep rates unchanged and flagged the possibility of higher interest rates in the future if the energy shock persists.