GBP/AUD: Watch out if it falls below 1.6870

There is a short-term topping pattern in both EUR/AUD and GBP/AUD, but have a look at the daily picture for GBP/AUD (see chart). I know it’s not clever to pre-empt any formations, but if this pair breaks cleanly below 1.6870 then we could get a sharp 700 pip sell-off?

If the cross does break down, wait for the AUD/USD to hit resistance levels and then sell the cable.