GBPAUD Bears Are Keeping Their Edge

For most of the previous week, the GBPAUD market maintained a generally bearish trajectory. While the pound held a tranquil stance on a fundamental basis, the Aussie side remained more active. As a result, investor speculation around the Aussie weighed on the pair, causing it to descend toward lower price levels.

Key Levels

Resistance: 2.100, 2.150, 2.200

Support: 2.050, 2.000, 1.950

GBPAUD Hits a Short-Term Resistance

On the GBPAUD daily chart, it is evident that price action has slid lower in recent sessions. As a result, the market still maintains a generally subdued outlook.

Meanwhile, the last price candle on the chart appeared red after testing resistance formed by the 9-day Exponential Moving Average (EMA) line. At the same time, the Stochastic Relative Strength Index (SRSI) indicator lines show a steady upward retracement from the oversold region. Therefore, a subsequent rise above the 9-day EMA curve may signal something more significant.

GBPAUD Short-Term Base Above the 9-Day EMA Holds

On the 4-hour chart, it is visible that price action stands directly above the 9-day EMA curve. The last price candle here is red and appears as an inverted bearish formation. At the same time, the SRSI indicator lines are converging below the 80 mark.

Due to the holding base, the terminal part of the SRSI indicator lines is merging and proceeding sideways. Technically, this suggests that upside forces may be building and could be potent enough to push the market toward the 2.0800 price level. However, if bearish sentiment continues to dominate, the market may keep diving toward 2.0400.

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