GBPAUD May Bounce Back

The GBPAUD market dipped significantly in the previous session as speculation surrounding the Australian dollar intensified. However, with the release of the Balance of Trade data, it appears that the bears are taking their feet off the gas pedal. Can we expect a further upward rebound? Let’s take a closer look.

Key Levels

Resistance: 2.100, 2.150, 2.200

Support: 2.000, 1.900, 1.800

GBPAUD Sees a Modest Rebound

Despite ongoing speculation surrounding the Australian dollar, the GBPAUD market experienced a notable pullback from its previous upward trajectory. However, the ongoing session has shown some resistance to this decline, with price action stalling just below the 9-day Exponential Moving Average (EMA) curve.

The size of the current price candle reflects only a modest recovery. Additionally, the Moving Average Convergence Divergence (MACD) indicator lines maintain their downward path following a recent crossover above the equilibrium level. The MACD histogram bars continue to appear solid red and remain below the equilibrium, affirming that bearish momentum may still be present in the market.

Upside Retracements in the GBPAUD Market Remain Subdued

Although the GBPAUD market is attempting an upward retracement, the momentum appears to be fading. This is evident from the diminishing size of recent green price candles, all forming below the 9-day EMA curve. The current session’s candle appears to be a small, dashed-shaped formation, which further suggests the influence of downward pressure.

Likewise, the MACD lines are still on a downward trajectory, and the histogram bars remain below the equilibrium level. These indicators suggest that any upward rebound remains within bearish territory, with limited strength behind the recovery.

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