The pound and the Aussie appear evenly matched on the fundamental front. Yet, the GBPAUD market has continued its downward correction. Even from a technical perspective, price action remains firmly within the prevailing bearish trend.
Key Levels
Resistance: 2.0500, 2.1000, 2.1500
Support: 2.0000, 1.9500, 1.9000
GBPAUD Retreats to Trade Just Above the 2.000 Price Level
The GBPAUD market experienced a short-lived breakout about five sessions ago. However, those gains were quickly erased over the following four sessions as prices dropped below the 2.000 price level. Nevertheless, today’s trading session has pushed the market back above the 2.000 mark.
All of this activity has occurred below the 9-day Exponential Moving Average (EMA) line. As of the time of writing, the most recent price candle on the chart shows a significant upward compression. The lines of the Stochastic Relative Strength Index (SRSI) appear to be approaching a crossover just above the 50 level.
Even so, the market remains under notable bearish pressure on the daily chart.
GBPAUD Pokes Through an Important Technical Level in the Short Term
While the GBPAUD market has only shown mild upward contraction on the daily chart, the 4-hour chart reveals a more interesting picture. The ongoing session has seen trading move above the 9-day EMA curve.
At the same time, the SRSI indicator lines have just formed an upside crossover deep within the oversold region. This technical setup aligns with the short-term market trajectory, hinting at a possible correction toward the 2.0500 price level — at least in the near term—ahead of upcoming economic developments.
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