GBPAUD - Trend continuation

GBPAUD (1H) - short term bullish bias

The pound sterling has been in a flag consolidation pattern after its mid-October surge. The price is trying to find support near the moving averages on the daily chart. Zooming into the hourly chart, the RSI divergence foreshadowed the V-shaped reversal - a strong sign of aggressive profit-taking. The bullish MA cross following the break of the psychological level of 1.8800 was a confirmation that buyers are getting into the play. We expect an upside momentum at the end of the whipsaw.

Key support: 1.8720
Key resistance: 1.8850