After four
weeks of being range-bound during which time the pair formed a barbed wire
pattern on the W1 time frame consisting of four bars, GBP/AUD is on its way to
a trend reversal from an upward to a downward trend.
The weekly
bar from last week closed as a very impressive pin bar under the monthly and W1
resistance at 1.81654.
My
expectation is that during the next week the downward trend will lead the pair
to the support trend line of the upward trend (in red) or even a little lower,
to the 1.7950 – 1.7850 zone.
This zone
is a strong support for the GBP and the pair won’t overcome it easily. If the
breakout does occur we could we expect the downward trend to continue to 1.7100
– 1.7000.
The
alternative scenario is for a renewal of the rally, but I think it looks less
valid for the moment.
It's quite bearish, indeed.
ReplyDeleteLet's see how the delicle will proceed further.
ReplyDeleteStrong downward trend remains.
ReplyDeleteThe uptrend looks intact.
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDeleteThanks for such an informative analysis.
ReplyDelete