GBPAUD Rebounds Strongly

Despite Australia’s Balance of Trade coming in stronger than expected, it has not generated sufficient headwinds to pull down the GBPAUD market. At the same time, the Pound is expected to post weaker Retail Sales (MoM) compared to the previous release. Nevertheless, the pair has staged a sharp rebound, defying these fundamental pressures.

Key Levels

Resistance: 2.100, 2.150, 2.200

Support: 2.000, 1.950, 1.900

GBPAUD Sees a Spontaneous Upward Rebound

In the previous session, GBPAUD tested support at the lower band of the Bollinger Bands (BB) indicator. This test has since resulted in a strong upward move during the ongoing session, with the pair now trading closer to the middle band of the BB indicator.

Meanwhile, the Stochastic Relative Strength Index (SRSI) recently formed a bullish crossover in the oversold region. The indicator lines now show an upward trajectory, signaling growing bullish momentum. Technically, this suggests that the market may continue to push higher in the near term.

GBPAUD Bulls Occupy a Key Level

On the 4-hour chart, price action has advanced above the middle band of the BB indicator, with the latest candle appearing more pronounced than the previous one. This reflects strengthening bullish sentiment.

However, the SRSI lines have now surged to the 100 level, showing overbought conditions. While the bullish trend could still push prices higher, the risk of a short-term reversal increases at these levels. As such, the 2.0800 resistance mark may serve as a reasonable near-term target for traders seeking short-term gains.

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