GBP/AUD hits a 1-month high; remains bullish in the long-term.
GBP/AUD moved higher to a one-month high of 1.7850 after finding support at the 11-month lows at 1.7220, near the 50% Fibonacci retracement level of the up-leg from 1.5725 to 1.8730 on December 3. The price extended its gains above the 38.2% Fibonacci mark of 1.7575 and the 20- and 40-simple moving averages (SMAs) in the daily chart. The RSI indicator is advancing above the 50
If the price manages to edge higher and rise above today’s intraday’s high, it could challenge the 23.6% Fibonacci mark of 1.8015. An upside penetration of this barrier could drive the market until the 1.8150 resistance, registered on November 6.
Alternatively, in case of a downward movement, the market could stop near the 38.2% Fibonacci of 1.7575. Even lower, support could be found at the eleven-month low of 1.7220, which overlaps with the 50.0% Fibonacci region.
To sum up, GBP/AUD is in progress to create the fifth straight bullish day, confirming the upside tendency after the selling interest from the 1.8730 level. The strong rebound has also ensured the longer term bullish outlook remains intact.
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