GBP/AUD: A Reversal Could Be Near

Published 02/01/2016, 09:52 AM
Updated 07/09/2023, 06:31 AM

GBP/AUD is trading south for the last 5 months or so, but bearish price action is overlapping, thus a corrective with a wedge in current late stages of a downtrend from January high. Usually when strong momentum and volume are back market will move very sharply, in impulsive fashion and in many cases that will happen to the other-side; in our case up. That said, we need to be aware of a significant turning point here on GBPAUD especially if current leg down on 4h is an ending diagonal. Break above red resistance line and continuation towards 2.0540 would be an important evidence for a change in trend. In that case we will go to smaller time frame and look for potential long entries on pullback.

GBP/AUD, Daily And 4H

GBP/AUD Daily And 4 Hourly Chart

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