Will GBP/AUD Continue Trending South? | Technical Analysis

GBP/AUD traded lower on Monday, after hitting resistance near the 1.8120 level. Overall, the pair has been trading below a tentative downside resistance line drawn from the high of April 2nd, as well as below all three of our moving averages on the 4-hour chart. Thus, having all these signs in mind, we would consider the near-term outlook to still be negative.

A clear and decisive break below Friday’s low of 1.7940 would confirm a forthcoming lower low and thereby, signal the continuation of the prevailing downtrend. The bears may then get encouraged to push the battle towards the 1.7790 zone, marked as a support by the low of September 3rd. Another break, below 1.7790, may extend the decline towards the 1.7705 hurdle, which prevented the rate from drifting lower on August 9th and 13th.

Shifting attention to our short-term oscillators, we see that the RSI lies below 50 and points down, while the MACD stands below both its zero and trigger lines. Both indicators detect negative momentum and support the notion for some further near-term declines in this exchange rate.

On the upside, we would like to see a strong rebound back above 1.8320 before we start examining the case of a bullish reversal. The rate would already be above the aforementioned downside line and could sail north towards the peak of June 12th, at 1.8460. If the bulls are strong enough to overcome that barrier as well, then we may see them driving the action higher, towards the 1.8650 area, which provided strong resistance between May 25th and 29th.


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. 83% 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 2020 JFD Group Ltd.