The UK economy has not been performing well recently. As such, this has generated a significant amount of headwinds in the GBP/AUD market. Lately, however, there has been a pullback to the upside, but the pair still lacks the technical strength to suggest a significant recovery.
Key Levels
Resistance: 1.9250, 1.9500, 1.9750
Support: 1.9100, 1.8900, 1.8700
GBP/AUD Minimal Gains Look Overwhelmed
The ongoing session in the GBP/AUD market appears green. This signifies a potential shift in the broader downward trend. However, price action remains below the 9-day Exponential Moving Average (EMA) line and, as such, lacks the conviction needed to confirm a long-term upward correction.
The Stochastic Relative Strength Index (SRSI) indicator lines have formed an upward crossover and are now trending higher, suggesting only a short-term shift in momentum.
Market Maintains a Steady Gaze in the Short Term
In the short term, the GBP/AUD market has maintained an upward path. The pair has edged higher for the second consecutive session. The latest price candle also remains green and is climbing toward the resistance formed by the 9-day EMA curve.
Similarly, the SRSI indicator lines are still trending upward following a bullish crossover. However, the lines remain below the 40 level of the indicator. As such, traders may want to stay on the sidelines a bit longer to see whether the market can break above the 9-day EMA before targeting the 1.9250 level.
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