While the pound stays largely tranquil on the fundamental front, the Aussie side seems to have the upper hand. This has been the major factor driving the GBPAUD market in its current direction. With the expected economic data due next week, let’s try to see where this market may head shortly.
Key Levels
Resistance: 2.100, 2.150, 2.200
Support: 2.000, 1.950, 1.900
GBPAUD Sets to Sail Southward
With price action in the GBPAUD market rebounding downward since it last tested the ceiling around the 2.100 price level, price action seems set to descend further. The last price candle on the chart has just poked through the support formed by the middle band of the Bollinger Bands (BB) indicator.
Consequently, this suggests that price action has set a bearish course. Additionally, the lines of the Stochastic Relative Strength Index (SRSI) indicator have descended deep into the oversold region. While the movement of the SRSI seems a bit exaggerated given the fundamental stance, it may remain there since bearish sentiments are likely to dominate in the meantime.
GBPAUD Stays Its Bearish Course
Even on GBPAUD’s shorter time frame, market bears seem to retain dominance. Here, price action can be seen pushing hard against the lowest limit of the BB indicator.
However, the last price candle on the chart is a green one, which suggests some level of upward movement but can be regarded as noise given the general trajectory of the market.
Likewise, the SRSI lines keep a bearish trajectory into the oversold region. Technically, this affirms that headwinds are solidly in place in this market; therefore, traders can expect to see price action moving toward 2.050.
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