GBP/AUD Technical Analysis Summary
Below 1,665
Sell Stop
Above 1,725
Stop Loss
| Indicator | Signal |
|---|---|
| RSI Neutral | |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Sell |
| Parabolic SAR | Sell |
| Bollinger Bands | Sell |
GBP/AUD Chart Analysis
GBP/AUD Technical Analysis
On the daily timeframe, GBPAUD: D1 approached the support line of the neutral range. It must be broken down before opening a position. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if GBPAUD: D1 drops below its most recent low of 1.665. This level can be used as an entry point. Initial risk limit is possible above the last up fractal, upper Bollinger band and Parabolic signal: 1.725. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (1.725) without activating the order (1.625), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Forex - GBP/AUD
The British pound noticeably weakened after the announcement of an increase in budget spending. Will GBPAUD quotes continue to decline?
British finance minister, Chancellor of the Exchequer Kwasi Kwarteng, announced planned tax cuts to support households and corporations. In addition, the government is going to stimulate the British economy in the amount of about 100 billion pounds. It is possible that such a negative will be stronger than the positive growth factor of BoE rate to 2.25% from 1.75% at the meeting on September 22. Recall that inflation in Britain in August far exceeded the rate and amounted to 9.9% y/y. In Australia, inflation in the 2nd quarter was 6.1% y/y. The Reserve Bank of Australia (RBA) rate is now 2.35%. The next meeting will take place on October 4th. Australian inflation data for the 3rd quarter will be released on 26 October. An additional negative for the pound could be political risks in Europe, which have already begun to negatively affect business activity. Last week, the preliminary S&P Global Australia PMI for September was 53.9. This is noticeably better than the similar S&P Global/CIPS United Kingdom PMI of 48.5 points.