GBPAUD Wrestles Up Modest Gains

The GBPAUD market has been pricing modest gains on the back of the fact that the British pound has some key upcoming economic data, such as the inflation rate and S&P Global Services PMI, which are expected to arrive with a bit of positivity. This seems to have played a key role in keeping the price of the pair sustained above a psychological baseline.

Key Levels

Resistance: 2.0100, 2.0150, 2.0200

Support: 2.0000, 1.9800, 1.9700

Upside Forces in the GBPAUD Strain Toward a Key Landmark

Over the past two trading sessions, the GBPAUD market has seen some modest upside movement. As a result, price action here hasn’t been able to breach the resistance at the 9-day Exponential Moving Average.

The last price candle on the daily chart here stays green but appears compressed below the EMA and, as such, suggests that headwinds may be strong above this technical landmark.

Despite this, the Stochastic Relative Strength Index (SRSI) indicator lines are still rising upward from the oversold region but remain below the 30 mark. As such, this market still needs some more push.

Bears Threaten GBPAUD’s Upside Movement

Coming to a medium-term price chart, one can see that bears have clawed intra-day gains. As a result, the current price of the pair was forced to sit just above the 9-day EMA curve.

Simultaneously, the SRSI indicator lines as well are merged and are proceeding sideways just above the 50 threshold level of the indicator. As such, this market requires caution, as a breach of the support at the 9-day EMA curve may signal at least a short-term reversal toward the 2.000 price level.

Nevertheless, considering the array of economic data that are about to arrive, upside forces stand a chance of pushing toward the 2.0150 price level.

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