GBPAUD General Upward Correction Remains Intact

The GBPAUD market has maintained a long-term upward trajectory for some time. However, recent fundamental shifts in economic developments have introduced intermittent changes. The latest speculated interest rate reduction appears capable of triggering a potential trend reversal in favor of the bears, as it could prompt a safe-haven move, increasing demand for the Australian dollar among investors.

Key Price Levels

Resistance Levels: 2.1000, 2.2000, 2.3000

Support Levels: 2.0000, 1.9500, 1.9000

GBPAUD Bounces off a Key Resistance Level

Price activity in the GBPAUD market remains broadly aligned with further upside potential. However, there are short-term bearish signals. The current session’s price candle has bounced off the midline of the Bollinger Bands. The most recent candle is shaped like an inverted hammer, which typically suggests the possibility of a near-term downward retracement.

Meanwhile, the Moving Average Convergence Divergence (MACD) lines remain converged and are approaching a crossover near the equilibrium level. The MACD histogram bars are pale red, indicating that bearish momentum is currently weak.

GBPAUD Closes in the Red

While the GBPAUD market recently experienced a bullish rebound, that momentum appears to have encountered resistance, resulting in a short-term downward shift during the latest session.

The Bollinger Bands indicator continues to show a slight upward slope, with price action staying above the midline.

The MACD lines remain above the equilibrium level, with the trailing end of the lines still slightly angled upward. Although the MACD histogram bars continue to appear above the baseline, their pale color suggests fading momentum.

Therefore, the market may remain supported by ongoing positive economic developments. However, if a rate cut by the Reserve Bank of Australia strengthens the Australian dollar as a safe-haven asset, the GBPAUD pair may decline toward the 2.0000 price level.

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