GBPAUD Continues to Consolidate

The GBPAUD market has struggled to regain its previous momentum ever since its bullish run fizzled out. This occurred after price action tested the resistance at the 2.1600 price level. This seems to be the aftermath of lower-than-expected Retail Sales data, while the Aussie market still has some key data releases coming up.

Key Price Levels
Resistance Levels: 2.1000, 2.1500, 2.2000
Support Levels: 2.0000, 1.9500, 1.9000

GBPAUD Descends Below Key Technical Levels

Due to growing headwinds, the GBPAUD market has been descending below important technical levels. The last price candle on the chart appeared red with a small body. However, this candle has placed the pair trading below the 20-day Moving Average (MA) line.

Meanwhile, the Stochastic Rate of Change (SROC) indicator line remains above the equilibrium level but is trending sideways. Technically, this suggests that bullish and bearish forces are currently balanced, with bearish pressure slightly dominating.

GBPAUD Is in Danger of Further Price Descent

On the 4-hour chart, GBPAUD price candles can be seen retreating below more MA lines. At this point, the pair is trading below the 20-, 50-, and 100-day MA lines. Additionally, the 20- and 50-day MA lines have converged above the last price candle.

As a result, the terminal part of the SROC indicator has turned red and is trending sideways just below the equilibrium level. This suggests that the market may push toward the 2.0736 baseline. However, this move will largely depend on emerging fundamentals from the Aussie side of the market.

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