GBPAUD Weekly Technical Outlook
All the GBPAUD candlesticks on the monthly time frame since September 2017 have been strongly bullish. However, price action on the monthly time frame has entered a strong resistancde zone and we may expect a period of consolidation or sideways operation on this pair in the early part of this week. On the weekly time frame, price action has broken a resistance trendline (chocolate colour) from the high of August 2015 but a support trendline from the low of August 2017 is still in play. We may expect price action to retest this trendline or at least pullback before further northward move. Should price action manage to push upward, we may see bulls target the next resistance zone around the 1.83090 area. However, we should be aware of a resistance trendline (magenta colour) from the highs of the recent candlesticks in an operating ascending wedge formation. This is likely to hinder the advance of price action northward; which may result in a retracement of price action to the support trendine (navy colour) or a sideways disposition in the days ahead.
On the daily time frame, last week price action entered a resistance zone formed by two resistance trendlines (in magenta and red colours) and retraced southward from them. Note that price action is operating in an ascending channel within the context of a longer-term descending trend. Thus, we may expect price to bear southward, particularly as price action is at the distal part of the channel. A first target for bears is likely to be the channel support; this is may be followed by a target of the immediate support zone around the 1.68850 area.
On the H4 time frame, price action is operating in an ascending wedge (bound by blue coloured lines). This is apparently a corrective pattern. The most recent price action on this time frame last week Friday were predominantly bearish and in the area of channel resistance. Thus, we may see at least a retest of channel support soon. A break of channel support may see bears target the immediate horizontal support around the 1.73740 area.
I may be wrong. Trade safe and prosper.