For all of 2022, the GBPAUD has been capped by the channel resistance.

A move above the long-term 38% Fibonacci retracement at the 1.8738 level would signal a move towards 1.9000. With stocks elevated, this could be a risk for bears in the event we see some equity market selling pressure in the coming weeks.

David assesses the current wedge pattern as being critical in determining the next leg of direction, as the support areas clearly show areas of contention to the downside, however, the upside remains bear towards 1.89-1.90 and a pretty speedy route, given the trend continues.