The GBP/AUD trend remains bullish as up until now price stays above the previously established low at 1.7844. After the price has tested the high at 1.8525 on October 22nd, the correction down followed. Price has dropped down to 1.7936, after which, higher high and higher lows pattern started to appear.
On November 16, GBP/AUD rejected the uptrend trendline and then broke above the downtrend trendline as well as 50 Simple Moving Average. It also broke above the previous high at 1.8265, where previously the downtrend trendline got rejected.
This might suggest that the uptrend is about to continue and based on Fibonacci cycles, a new cycle has just started. Since the middle of the last week, GBP/AUD has been rejecting the 50 SMA, and there were at least 3 rejections already. The last rejection of the EMA occurred just yesterday, where the price has produced the low at 1.8127. This level should play a very important role in further price development as 4h and/or daily close below will invalidate bullish forecast. In this scenario, the trend is likely to change to bearish, at least for short to medium term.
However, as long as 4h close remains above 1.8127, GBP/AUD will remain extremely bullish. The key and perhaps final resistance is located near 1.8900 psychological level, which is confirmed by 161.8% and 227.2% Fibonacci retracement level. And based on Fibonacci cycles, the upside target could be tested either around December 8th or the beginning of January.
Key support levels: 1.7985, 1.7936
Key resistance levels: 1.8525, 1.8890
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
On November 16, GBP/AUD rejected the uptrend trendline and then broke above the downtrend trendline as well as 50 Simple Moving Average. It also broke above the previous high at 1.8265, where previously the downtrend trendline got rejected.
This might suggest that the uptrend is about to continue and based on Fibonacci cycles, a new cycle has just started. Since the middle of the last week, GBP/AUD has been rejecting the 50 SMA, and there were at least 3 rejections already. The last rejection of the EMA occurred just yesterday, where the price has produced the low at 1.8127. This level should play a very important role in further price development as 4h and/or daily close below will invalidate bullish forecast. In this scenario, the trend is likely to change to bearish, at least for short to medium term.
However, as long as 4h close remains above 1.8127, GBP/AUD will remain extremely bullish. The key and perhaps final resistance is located near 1.8900 psychological level, which is confirmed by 161.8% and 227.2% Fibonacci retracement level. And based on Fibonacci cycles, the upside target could be tested either around December 8th or the beginning of January.
Key support levels: 1.7985, 1.7936
Key resistance levels: 1.8525, 1.8890
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.