Since the start of the new year, the Australian dollar has been able to gather significant momentum. This has created headwinds for the GBP/AUD pair, keeping it on a downward trajectory. As a result, even with today’s rebound, the market remains under pressure.
Key Levels
Resistance: 2.0100, 2.0250, 2.0500
Support: 2.0000, 1.9800, 1.9500
GBP/AUD Registers a Strong Bounce but Stays Vulnerable
The ongoing session in the GBP/AUD market is marked by a notable green price candle. However, despite this rebound, the pair continues to trade below the 9-day EMA curve. This maintains the impression that downside forces remain dominant in the market.
The Stochastic Relative Strength Index (SRSI) lines are diving deep into the oversold region without any sign of convergence. This further confirms that bears remain in control and that the market may extend its decline.
GBP/AUD Eyes Short-Term Gains Around 2.0100
Although the GBP/AUD market remains largely downwind, short-term opportunities may still emerge. The latest price candle is bullish and shows a more pronounced body than the previous session. Additionally, recent price candles are forming above the 9-day EMA curve.
Meanwhile, the SRSI lines are rising steeply upward from the oversold region. As a result, traders may consider a short-term target around the 2.0100 price level in the interim.
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