The GBPAUD has been on a multi-decade uptrend, with the pair?s recent tumble looking to test a trendline originated in 1985. The most recent attempt at the significant support mark was in late 2005, but the sterling was able to rally and continue on its long-term ascent.
Current Price: 2.3814
Key Levels:
The GBPAUD has been on a multi-decade uptrend, with the pair?s recent tumble looking to test a trendline originated in 1985. The most recent attempt at the significant support mark was in late 2005, but the sterling was able to rally and continue on its long-term ascent. The current trend lends significant support at approximately 2.3600, with a reversal to point to large potential gains.
A more recent chart shows that the pair has thus far successfully held a key Fibonacci level at approximately 2.3750, but a recent tumble may force a retest through the coming days. The retracement mark likewise coincides with significant spike-lows in April, 2006 at 2.3680. This looks like it may create an impressive confluence of support with the 23-year rising trendline at the 2.3600 handle, making a bounce all the more attractive to the long-term trader.
The 240-minute chart gives us a much more granular look at the pair?s recent tumble, with a failure at a falling trendline at 2.4300 sparking a multi-week decline. Again, recent spike lows may offer support through short-term trade, with a bounce off of support near 2.3800 to eye a relatively minor trendline at 2.3900. Of course, coming below 2.3800 could nonetheless see support at aforementioned price floors in the 2.3600-2.3700 range. The more conservative long-term investor could wait for a breach of shorter-term support to wait for a bounce from longer-term levels. Given such risk-reward levels, the pair may be lining up for a good buy-and-hold opportunity.