JFD Bank:GBP/AUD TRADES ABOVE A PRIOR DOWNSIDE RESISTANCE LINE
GBP/AUD is the forex ticker that tells traders how many Australian Dollars are needed to buy a British Pound. The Pound is the fourth most traded currency in the world, with the Australian Dollar in fifth place, according to the Bank for International Settlements (2016).
GBP/AUD has been in a bearish trend shown on our hourly chart and right there we notice it formed a bearish pattern to continue the bearish trend i'll be going short on this market as soon as itgives us a confirmation to go short (break/retest)
GBP/AUD traded lower on Wednesday, after it hit resistance near 1.8423. On Tuesday, the rate emerged above the downside resistance line drawn from the high of September 20th, and although it pulled back on 10th of November, it remains above that line. That said, we are reluctant to call for a bullish reversal yet. preferably to wait for a break above 1.8423, marked by the high of November 3rd. Thus, for now, it needs to stay neutral.
But If, surely, the rebound is observed, and a break above 1.8423, a forthcoming higher high will be confirmed and perhaps pave the way towards the high of October 22nd, at 1.8500, or the high of October 19th, at 1.8530. If non of the barrier is able to limit the advance, then we may see extensions towards the peak of October 18th, at 1.8612.
While drawing attention to the short-term oscillators, it can be seen that the RSI turned down after hitting resistance near its 70 line, while the MACD, even though above both its zero and trigger lines, shows signs of topping as well. Notwithstanding that, both indicators detect upside speed, the fact that they have turned down enhances the choice of waiting for a break above 1.8423 before examining the case for a bullish reversal.
The actuate that could alert the resumption of the prevailing downtrend may be a return back below the downside line taken from the high of September 20th, or even better, a dip below yesterday's low, at 1.8267. This could initially pave the way towards Monday's low of 1.8190, or the low of November 2nd, at 1.8125. If the bears are not willing to stop there either, then we could experience declines towards the 1.8060 zone, marked by the inside swing high of May 4th.
It can be proven that The British Pound vs. the Australian Dolla. Due to its relatively higher interest rates and its correlation to global equity markets, the Australian Dollar is often referred to as a risk currency. Mining, which is Australia's largest economy sector, has been negatively affected by a slowdown in the global commodity super cycle and a decline in China's growth.
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