GBP/AUD Technical Analysis: RBA’s optimism drags the pair towards ascending support line

• GBP/AUD trimmed nearly 150 pips to 1.7950 after the RBA’s upbeat statements favouring employment scenario.
• The two month old ascending trendline, at 1.7850, now becomes nearby support for the pair traders to watch.

The GBP/AUD dropped to the intraday low under 1.7950 during early Tuesday as Reserve Bank of Australia (RBA) sound optimistic about employment while meeting overall consensus of no rate change. With this, an upward sloping trendline stretched since early December comes into market focus.

GBP/AUD: Four hour chart

Considering the pair’s recent drop of more than 150 pips past-RBA announcement, the two month old ascending trend-line at 1.7850 seems nearby support to watch. Given the pair slip beneath 1.7850 support, the 1.7750-40 area and the 1.7600 are likely following stops it can avail during further declines.

Assuming the pair’s extended south run past-1.7600, the 1.7550 and the 1.7500 may witness market attention.

On the contrary, the 1.8100 can become adjacent resistance for the pair to clear in order to aim for the 1.8180 and the 1.8210 resistance including 23.6% Fibonacci retracement of recent upmove.

Given the pair’s sustain rise above 1.8210, the downward sloping trend-line at 1.8300 can challenge the buyers.