Friday, August 23, 2019
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Technical Analysis – GBP/AUD continues sell-off

GBP/AUD continues sell-off near the 6-month bottom.

GBP/AUD extended its losses towards a new six-month low of 1.7630 on Tuesday, recording five straight red days. The selling interest started after the pullback on the almost three-year high of 1.8880, pushing the pair beneath the short-term moving averages and the Ichimoku cloud. The RSI indicator is hovering in the oversold zone; however, the stochastic oscillator is in the process to post a bullish crossover within its lines, indicating weaker bearish movement than before.

Further declines may meet support at the 1.7610 area, taken from the low on January 11, before posting a more aggressive rally until the December 2018 low of 1.7290.

On the upside, resistance could occur around 1.7860 that may be a strong barrier for the bulls to surpass. Higher still, the 23.6% Fibonacci retracement level of the downward wave from 1.8880 to 1.7630 around 1.7925 would increasingly come into scope, while not far above, the 20-day simple moving average is standing near 1.8015.

The short-term picture continues to look predominantly negative, with trading activity continuing the sell-off.


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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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