GBPAUD Weekly Technical Outlook
A rising wedge pattern (red) is conspicuous on the GBPAUD monthly time frame. In April, the market printed a bearish pinbar rejecting the wedge resistance trendline and bears have made further progress towards taking price action near the wedge support trendline but there is still a long way to go.
On the weekly time frame, price action has rejected the high of the long-tailed bearish candlestick printed in the last week of December 2018 and bearing southwards within the rising wedge (red) seen on the monthly time frame. Presently, the order flow context favours bears and we may see further southward move within the wedge this week. The 1.71600 area is a horizontal support and may be exposed should bears manage to pierce the wedge support trendline.
On the daily time frame, price action is operating within a falling channel (black). Recent market prints favour bulls to retest a value area, perhaps the 1.79650/1.80930 breached horizontal resistance area (bound by magenta horizontal lines). Such a retracement is likely to be a temporary in nature, giving way to a southward turnaround.
On the H4 time frame, presently price action is grinding a consolidation and based on recent technical patterns, this may result in a retest of the immediate minor horizontal resistance around the 1.78870 area; should the area not hold for southward turnaround, we may see the 1.79650/1.80930 area witness a southward turnaround.
I hold a short-term bullish bias (a northward retracement to the 1.78870 area or the 1.79650/1.80930 zone) for the early part of this week, which is likely to give way to a southward turnaround for a medium-term bearish mode in the later part of this week.
I may be wrong. Trade safe and prosper.