The British pound continues to be pressured by the Australian dollar. This is because the Australian economy has been outperforming its direct counterpart on the Gross Domestic Product (GDP) front. Consequently, this has kept the GBPAUD pair under tremendous pressure. The UK is also witnessing slowing business and consumer confidence, while the Aussies seem a bit more motivated on that front ahead of the May elections.
Key Price Levels:
Resistance Levels: 1.9800, 2.0000, 2.2000
Support Levels: 1.9600, 1.9400, 1.9200
GBPAUD Trades Below the 100-Day MA
The GBPAUD market has been falling below important technical landmarks since the last time price action in the market tested the resistance at the 2.0200 price level. Afterward, price action in this market has been spiraling downwards, falling through the lines of the applied Moving Average (MA) indicator.
The last price candle on this chart is green but places the market below three out of four MA lines, precisely the 100-day MA line. Meanwhile, the Stochastic Relative Strength Index (RSI) lines can be seen proceeding slightly upward from the oversold region of the indicator. The lines of the mentioned indicator are quite close to each other, suggesting that upside momentum is weak.
GBPAUD Bulls Are Mounting Resistance
The GBPAUD market on the 4-hour chart has revealed that downward forces aren’t having all that easy a time. The last two price candles on the chart have appeared green. Technically, this suggests that upside forces are taking effect in the sessions. Albeit, price action remains below all the MA lines. Also, the 20- and 50-day MA lines seem to have the potential to deliver a crossover above price action.
Meanwhile, the Stochastic RSI lines are in the oversold region and are approaching a crossover in that region. Therefore, two things may result: upside momentum will gain strength and retrace to higher price levels. However, the position of price action below all the MA lines plus the presence of the lines of the indicator in the oversold region significantly dampens upside hopes.
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