The Bank of England recently released its interest rate data, and it came in unchanged. This appears to have weighed on the pound, causing the GBPAUD market to slide lower. As a result, the pair has been pressured to retreat below the important technical resistance.
Key Levels
Resistance: 2.100, 2.150, 2.200
Support: 2.050, 2.000, 1.950
GBPAUD Remains Sealed Below the 9-day EMA
The GBPAUD market has recently recorded modest gains toward the 2.0600 price level. However, as soon as the market tested resistance at the 9-day EMA line, it pulled back. Currently, the last price candle on the chart takes the shape of an inverted hammer.
At the end of an upward swing, this often signals a stronger subsequent downward retracement. Meanwhile, the lines of the Stochastic Relative Strength Index (SRSI) indicator are still trending upward. A closer look at this indicator reveals that the SRSI line is moving more quickly than the actual price action. Consequently, this points to weakness in the ongoing upward rebound.
GBPAUD Resumes Retracing the 2.000 Price Level
Since the previous session, the GBPAUD market has been experiencing a steep decline in price. The last price candle on the chart can be seen with a conspicuous body dipping below the 9-day EMA curve.
This price candle has brought the session lower beneath the 9-day EMA curve. Likewise, the SRSI has delivered a bearish crossover in the overbought zone, and the subsequent lines are proceeding sharply downward. From a technical perspective, this market remains aligned toward a potential revisit of the 2.000 price level.
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