Friday, August 23, 2019
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Technical Analysis – GBP/AUD records red sessions in a trading range

GBP/AUD is posting red days, hovering around the lower boundary of the trading range (1.8100 – 1.8880), which has been standing since February 19. The RSI is pointing down in the negative territory, while the stochastic is holding in the oversold area.

Should the market continue its downside direction and penetrate the range, support could initially emerge between 1.8100-1.8043, which overlaps with the 50.0% Fibonacci of the up-leg from 1.7220 – 1.8880. Even lower, a rally could find an obstacle at the 1.7990 level and at the 61.8% Fibonacci of 1.7845.

Alternatively, the 20-day simple moving average (SMA) near the 38.2% Fibonacci of 1.8243 could halt upside movements ahead of the 40-day SMA at 1.8365. Crossing above this area, the buying interest could turn more aggressive, with the bulls probably targeting the 23.6% Fibonacci near 1.8485.

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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