In today’s technical analysis, we’re focusing on the British Pound to Australian Dollar, which is displaying a clear bearish structure.
Throughout April, the pair held firmly above a concrete support level around 2.072, marked with an orange horizontal line. This support was tested multiple times across three weeks, confirming its strength. However, at the beginning of May, that support was decisively broken, initiating a bearish phase.
Following the breakout, the pair attempted a recovery. On May 6th, the broken support was retested—this time as resistance. The test failed to result in a breakout to the upside. Yesterday, the price briefly flirted with reclaiming the orange resistance area but was sharply rejected. The rejection also occurred at a mid-term descending trendline, marked with a blue line, adding further weight to the bearish outlook.
The confluence of two rejections—first from the broken support turned resistance, and second from the descending trendline—reinforces the negative sentiment. As long as the price remains below these two technical barriers, the sell signal stays active. The likely target lies at the next significant support: the blue horizontal level around 2.048.