GBP/AUD is struggling to search out a direction after hitting a technical resistance late last week.

In case you missed it, the discharge of Friday’s U.S. NFP report caused volatility spikes amongst the most important U.S. dollar counterparts.

Among the many volatile currencies, the British pound outpaced commodity-related currencies just like the Aussie following the discharge of net positive U.K. PMI reports.

The pound’s strength over the comdolls prolonged to this week when not even a net weak U.K. labor market data release kept GBP within the red against AUD, CAD, and NZD for long.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. In case you haven’t yet done your fundie homework on the British pound and the Australian dollar, it’s time to examine out the economic calendar and stay updated on day by day fundamental news!

GBP/AUD 4-hour Forex Chart by TradingView

GBP/AUD has since traded lower after hitting resistance on the 1.9350 area. The pair is now trading closer to 1.9250 – 1.9300, which isn’t too removed from the Pivot Point (1.9249) and former resistance levels within the 4-hour timeframe.

More importantly, GBP/AUD’s levels line up with the mid-channel area on the chart.

Will the pair extend its uptrend in the following trading sessions?

A few bullish candlesticks from its current levels can attract enough buyers to push it back to its 1.9350 highs if not the R1 (1.9405) Pivot Point line near the highest of the ascending channel pattern.

But when this week’s headlines proceed to limit GBP/AUD’s bullish prospects, then the pair may even see a deeper pullback before the bulls step in. A move to the S1 (1.9162) Pivot Point line near the channel and 200 SMA support zone could also be on the table if GBP/AUD trades below the PP and mid-channel zone.

What do you think that? Will GBP/AUD extend its uptrend from its current levels? Or will the pair see bearish pressure before it sees sustained bullish demand?