The GBPAUD market has been on an upward path for an extended period. However, at a time when the British pound appeared quiet on the fundamental front, several speculative events surrounded the Aussie. These include GDP data, the RBA meeting, and balance of trade figures. This has drawn significant attention to the Australian dollar, thereby limiting upside progress in the GBPAUD market.
Key Price Levels
Resistance Levels: 2.1000, 2.1500, 2.2000
Support Levels: 2.0500, 2.0000, 1.9500
GBPAUD Hovers Just Below the 2.1000 Threshold
The GBPAUD market has once again reached the 2.1000 price level but lacks the momentum needed to breach this resistance. As a result, the market has been consolidating just below this price mark.
Price action hovers near the upper limit of the Bollinger Bands indicator. Additionally, the Smoothed Rate of Change (SROC) indicator line continues to rise and has recently broken through the equilibrium level, which is acting as resistance. Technically, this suggests the market may continue its upward movement.
GBPAUD Contracts Upward Above Lower Limits
On the 4-hour chart, price activity in the GBPAUD market has tested and breached the midline support of the Bollinger Bands. The most recent price candle has pushed against the lower limit of the Bollinger Bands. However, it appears that the market may not decline further to lower support zones, as the latest candle is showing signs of upward contraction.
Furthermore, the SROC indicator line remains above the equilibrium level, albeit with a slight downward slope. Therefore, traders should closely monitor economic developments from Australia, as stronger-than-expected data may trigger further price declines toward the 2.0500 level.
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