GBPAUD approaching resistance, potential drop!

GBPAUD is approaching our first resistance at 1.8508 (horizontal swing high resistance, 100% Fibonacci extension). A strong reaction might occur below this level, pushing price down to our major support at 1.8376 (horizontal pullback support, 38.2% Fibonacci retracement, 61.8% Fibonacci extension) which coincides with our long term ascending support line.

Stochastic (55,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor for a potential drop in price.

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