GBP/AUD Trades Within a Sideways Range | Technical Analysis

GBP/AUD tumbled on Friday, after it hit resistance at 1.8020 on Thursday. Overall, the rate appears to be trading within a sideways range between the aforementioned barrier and the support 1.7790. So, despite today’s tumble, as long as the pair stays within the range’s boundaries, we will take a neutral approach.

In order to start examining the bearish case, we would like to see a decisive dip, not only below the lower bound of the range, at 1.7790, but also below the 1.7765 level, which is marked as a support by the inside swing highs of January 25th and 26th. This will confirm a forthcoming lower low on the daily chart and may initially pave the way towards the low of January 25th, at 1.7684. If that barrier is not able to stop the decline, then its break may see scope for extensions towards the 1.7590 territory, marked as a support by the low of January 21st.

Taking a look at our short-term oscillators, we see that the RSI runs below 50 and points down, while the MACD, although slightly positive, lies below its trigger line and points down as well. It would turn negative soon. Both indicators suggest that some further declines may be in the works, but as we already noted, we prefer to wait for the downside exit out of the aforementioned range before we get confident on that front.

Now, for the picture to turn bullish, a break above the range’s upper end, at 1.8020, may be needed. This, accompanied by a break above the peak of December 8th, at 1.8047, may set the stage for advances towards the 1.8213 level, marked by the high of December 4th, the break of which may trigger extensions towards the peak of November 23rd, at 1.8315.


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.07% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2021 JFD Group Ltd.

Nice analysis. AUD has gone strong across the board. It is very strong against the dollar too