Monday, January 22, 2018

GBP/AUD May Be Preparing To Renew Its Rally

The bars on the W1 time frame for the past four-five weeks are exceedingly small spinning tops that have been formed within the support zone above 1.7100 – 1.7200.

I expect that the pair will renew its move north after the depreciation from last month that began from 1.79940 and ended at 1.70962. I think that in the medium term the pair will head for the resistance trend line (in blue) and it will reach 1.8000 – 1.8100.

In the alternate scenario there will be a depreciation, but that scenario will become valid only in case there is a break out below the support trend line (in red) and the pair remains below it for a considerable period of time. In the short term that is not very probable.