GBP/AUD slips below the bearish cross of the short-term SMA.

GBP/AUD extended the last four days’ losses and is currently trading not far above a six-week low around the 38.2% Fibonacci retracement level of the upward movement from 1.7220 to 1.8860.

The RSI turned lower after entering the 50 level and it continues to head lower in support of a negative short-term picture. The bias in the very-short-term also looks bearish as indicated by the stochastics: the %K and %D lines are negatively aligned and are both moving further down.

Further declines may meet support near the 38.2% Fibonacci before edging lower towards the 50.0% Fibonacci region of 1.8035. Not far below, support could occur around the 1.7990 level.

On the upside, resistance could come around the 23.6% Fibonacci of 1.8470, while next, the price could flirt with the bearish cross within the 20- and 40-simple moving averages (SMA) currently at 1.8500 in the daily chart. Higher still, the 1.8730 would increasingly come into scope.

The medium-term picture looks predominantly bullish, however, a slip until the 50.0% Fibonacci could change the outlook to a more neutral one.


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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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