As we approach the Easter holiday break and anticipate a period of lower market volatility, British Pound to Australian Dollar (GBP/AUD) is offering a potentially decisive setup on the charts. Over the past several weeks, this pair has been forming a textbook descending triangle pattern — a formation that often precedes significant price movement.
The structure is clear: price action is compressing between a flat horizontal support, marked around the 2.072 area (yellow line), and a gradually declining series of lower highs, forming a dynamic black resistance. Each bounce off the support has been weaker, indicating rising selling pressure and a reluctance from buyers to push higher.
This type of pattern typically has a bearish bias. The repeated tests of support suggest that a breakout to the downside may be imminent. A confirmed daily close below the yellow horizontal support would activate a strong technical sell signal, opening the door for a deeper move.
However, not all is yet decided. If bulls manage to regain control and push the price above the descending black trendline, closing the day convincingly higher, it would invalidate the descending triangle.
As trading activity winds down ahead of the Easter holiday, this setup may be one to watch closely. Whether it's a break or a bounce, GBP/AUD is likely approaching a technical crossroads — and whichever direction is chosen could set the tone for the days to come.