One of my subscribers asked me to review the GBP/AUD so this post is in response to this request and details what I am currently seeing on this currency pair. As always, I approach technical analysis from a top down perspective and start with a look at the monthly chart before drilling down to the lower time frame 4hr chart.

GBP/AUD monthly: Price action was in a downtrend from late 2001 until 2013 at which time the print of lower Lows ceased. Overall price action now looks to be consolidating within a triangle pattern of sorts but the upper trend line has only two points of contact. The horizontal levels of 2.25 and 2 seem to be considerable S/R levels.

GBP/AUD weekly: this time frame reveals the 1.80 level as being of some importance so watch this region for any new make or break:

GBP/AUD daily: the daily chart shows the price has been in a downtrend for the last two months and there is a descending channel that could also be viewed as descending wedge so keep an open mind about any bullish-reversal breakout move here. Watch for any potential Hold above the 1.80 level. Any bullish breakout would bring the 61.8% fib, up near the key 2 level, into focus as a potential target:

GBP/AUD 4hr: price action remains bearish whilst below the Ichimoku Cloud so watch this fluid resistance zone for any new break to the upside:

GBP/AUD 4hr: the most recent 4hr chart price action reveals consolidation in a triangle so watch for any momentum-based trend line breakout. Whether this is consolidation before the next move Lower or Higher remains to be seen but watch the ADX and trend lines for clues. The ADX is already well above the 20 level BUT keep an eye on the +DMI as this is currently bellow the 20 breakout region:

Summary: the GBP/AUD has been a recent daily chart downtrend but looks to be consolidating on the 4hr time frame. Whether this is consolidation before the next move Lower or Higher remains to be seen but watch the ADX and trend lines for clues. Watch the 1.80 S/R level for any new make or break.