Wednesday, June 26, 2019
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Technical Analysis – GBP/AUD in a trading range

GBP/AUD hovers near the lower boundary of the trading range.

GBP/AUD has been trading in a consolidation area since February 19, with upper boundary the 35-month high of 1.8880 and lower boundary the two-month low of 1.8100. Currently, the price is edging slightly higher, with the short-term momentum indicators signaling a bullish bias. The RSI is pointing up in the negative territory, while the stochastic is moving towards the overbought area.

The 20-day simple moving average (SMA) near the 1.8305 resistance could halt upside movements ahead of the 40-day SMA at 1.8385. Crossing above this area, the buying interest could turn more aggressive, with the bulls probably targeting the 23.6% Fibonacci retracement level of the up leg from 1.7220 to 1.8880 near 1.8485.

Should the market change direction to the downside, support could initially emerge between 1.8100-1.8043, which overlaps with the 50.0% Fibonacci. Even lower, a move lower could find an obstacle at the 1.7990 level.

Concluding, investors should wait to see a drop below 1.8100 for bearish actions or a climb above 1.8880 for bullish orders.


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Disclaimer:
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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