Sunday, December 8, 2019
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Technical Analysis – GBP/AUD hits fresh 3 ½-year high

GBP/AUD hits fresh 3 ½-year high; may flatten in the short-term.

GBP/AUD stretched to a fresh 3 ½-year high of 1.9150 on Friday ahead of the Reserve Bank of Australia policy meeting early on Tuesday. The bullish action could take a breather in the short-term according to the RSI which is pointing towards its 50 neutral level. The MACD, which looks ready to cross under its red signal line, backs this view as well.

The 1.8880 level could immediately curb any potential downside correction and deter the price from sliding towards 1.8720, which was a key support and resistance region in previous sessions. Beneath the latter, the selling pressure could pause near the November low of 1.8545, a break of which could open the door for the 1.8400 number.

Should the bulls take control instead, driving the price above the 3 ½-year high of 1.9150, traders could search for resistance somewhere near 1.9300 and then higher around 1.9850.

In the bigger picture, GBP/AUD has turned slightly positive following the close above 1.8880. A drop under this mark would resume the sideways move in the market.

Summarising, GBP/AUD could trade in a neutral manner in the short-term, while in the bigger picture a decline under 1.8880 is required to bring the neutral outlook back into play.


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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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