GBPAUD Set to Descend Lower

The GBPAUD market hasn’t been in its best shape for a while. Price action has been gradually sliding toward lower levels. The Aussie side of the market has remained quiet, while the pound side seems to be influenced by some speculation. The S&P Global Services PMI Flash came in better than expected at 53, compared to the forecasted 51.2. Similarly, Retail Sales (MoM) is projected to rise to 1.2% from a previous 2.7%.

However, none of this has been able to stimulate bullish momentum just yet.

Key Levels

Resistance: 2.100, 2.150, 2.200

Support: 2.000, 1.950, 1.900

GBPAUD May Slide Lower

The GBPAUD market has yet to find a solid foothold above the 2.000 price level. It hasn’t been able to breach resistance at the midline of the Bollinger Bands (BB) indicator since last testing it five sessions ago. Since then, the market has been inching slightly downward. The BB indicator itself is gradually tilting lower.

Likewise, the ongoing session appears to be maintaining a bearish trajectory as the market approaches the lower limit of the BB indicator. The Smoothed Rate of Change (SROC) indicator has also dipped below the equilibrium level. Consequently, the market seems poised to decline further.

GBPAUD Retains a Subdued Look

Even on shorter GBPAUD timeframes, price action remains relatively subdued. Although the last two candlesticks appear green, they still hover near the lower limit of the BB indicator.

Moreover, the BB indicator on this timeframe has a much steeper downward slope than the one on the daily chart. The SROC indicator line also remains below the equilibrium level.

Consequently, this market seems to have a strong potential to drop toward the 2.000 price level—barring any significant shifts in economic data.

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