With the RBA interest rate decision still ahead, investors are beginning to take sides. This has continued to weigh down the GBPAUD market, causing it to extend its bearish correction further south. Let’s take a deeper dive into the market below.
Key Levels
Resistance: 2.0500, 2.1000, 2.1500
Support: 2.0100, 1.9500, 1.9000
GBPAUD Market Sees a Steep Dive
The GBPAUD market has been dipping for almost a week. This has consequently brought the market to an eight-month low.
The ongoing session shows an upward bounce but remains at a significant distance below the 9-day Exponential Moving Average (EMA) line. The lines of the Stochastic Relative Strength Index (SRSI) indicator have fallen deep into the oversold region. This technically suggests that bears are holding sway and may keep the market trending south.
GBPAUD Bullish Rebound Stays Vulnerable
On the GBPAUD 4-hour chart, price action is showing some upside movement. The ongoing session has pushed above the 9-day EMA curve, and the corresponding price candle remains green, keeping short-term bullish hopes alive.
However, the SRSI indicator lines have risen considerably into the overbought region despite only a modest price increase. This indicates that upside forces are losing momentum too quickly. As such, the upward retracement may not extend very far, suggesting the market could continue its descent toward the 2.0000 mark.
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