GBPAUD Traders Remain Cautious

With the Forex market anticipating key economic data, such as the Reserve Bank of Australia’s (RBA) interest rate decision, UK unemployment figures, and inflation data, GBPAUD appears to be trending toward steeper declines. However, whether or not the pair will sustain this trend strongly depends on which side of the market benefits most from upcoming economic developments.

Key Price Levels:

Resistance Levels: 2.0000, 2.0200, 2.0400

Support Levels: 1.9500, 1.9000, 1.8500

GBPAUD Faces Rejection at the 50-Day MA

Price action in the GBPAUD market has been retracing higher over the past three sessions. However, as soon as the price reached the 50-day Moving Average (MA) line, a strong rejection occurred. This rejection was significant enough to push price action back below both the 20-day and 50-day MA lines.

Additionally, the Stochastic RSI lines are still maintaining an overall upward trajectory. However, a deflection can be observed in the lead line of the indicator. At this point, the indicator line is moving toward the 50 mark, suggesting that price action may still have room for further upside movement.

GBPAUD Maintains a Bearish Short-Term Outlook

On the 4-hour chart, price action has been steadily retracing toward lower levels. The ongoing session has fallen below all the MA curves, signaling continued bearish pressure. Additionally, the most recent price candle is bearish.

Meanwhile, the Stochastic RSI lines have fallen deep into the oversold region, while the last price candle still stands above the key technical support level of 1.9800. This suggests that downward momentum may be nearing exhaustion.

Given that market participants are awaiting key economic data, a weaker-than-expected Australian dollar (AUD) could trigger an upward rebound off the 1.9800 mark, potentially pushing price action toward the 2.0000 level.

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