GBP/USD still falling but AUD/USD back at key resistance

The pound has continued to drop against the dollar, while the Aussie is back at two-month highs.

GBP/USD still dropping

The market has rather fallen out of love with GBP/USD following the election, although some might see this pullback as a necessary correction before a move higher. Certainly, $1.28 might provide support, while a higher low would be formed at anywhere above $1.23.

Trendline support is nearby at $1.27, and if the price can begin to recover, with a bullish stochastic crossover in due course, then we might have the makings of a buying opportunity now the post-election excitement has dissipated.

AUD/USD back at recent highs

The AUD/USD price has pushed steadily higher over the past month, forming higher lows in that time.

A move above $0.6950 would see the highs of October and December finally breached, and open the way to more upside. Given the long-term downtrend since January 2018, this may be another false dawn however, so will need to be watched carefully.

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