1.8050 - the edge of the abyss for GBPAUD

The blue line on this GBPAUD chart at 1.8050 marks the edge of the abyss. This area has been tested 3 times previously this June but is a historical area of support and resistance. Where we go from here the markets will decide but a break south could see a large move down for GBPAUD with little support below for the next 500 pips. There's little joy for GBP BULLS across the board so you would expect that this key 1.8050 level would break but as the markets frequently do the exact opposite that you'd expect, I wouldn't be betting too heavily on a GBP SHORT from this level. We are at a place in the market where a straddle would have a chance. Set a LONG trade at 1.8070 and a SELL trade at 1.8030 with stops above and below 1.8050 for a 20 pip risk. The Momentum Indicator has crossed down over the 50 sma and we are trading under 100 so don't expect any strong moves just yet. I expect to see some sideways movement with the markets waiting for some fundamental news to set direction.