GBP/AUD creeps to 1.6961 session lows; standing on quicksand?

FXstreet.com (Chicago) - GBP/AUD started Asia’s journey retreating and giving in 0.10%. The pair prints lower highs as the pound weakens across the board.

Price action reveals a pair fluctuating below the EMA20 after plunging from 1.71 zone last September 16th. The upward trendline (April 4th reversal) was violated on Monday September 16th after an opening gap facing down. Another bearish gap manifested on September 18th confirming a potential downward movement extension. Yesterday, the pair registered monthly lows after plunging momentarily. With primary and secondary trends on bearish channel, the technicals favor a bearish scenario. Offered at 1.6969, the pair navigates between supports aligned at 1.6912 (August 15th lows), 1.6875 (September 10th lows) ahead of 1.68 (August 11th lows) and resistances set at 1.6980 (September 17th lows), 1.7034 (September 12th lows), 1.7086 (September 17th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe with a neutral EMA20.

Market participants wait for GBP data results in the UK next week and public sector net borrowing for August at 8:30 GMT.