Recently GBP/AUD found the top while testing the 1.8525 high. It certainly looks like the second upside wave to the upside has come to an end, and right now, it could be the time for an ABC correction. The current wave B has reached 88.6% Fibs at 1.8492, which has been rejected. If this is, in fact an upcoming ABC correction, the price should stay below the 1.8492 - 1.8525 resistance area.
This week’s price broke below the 50 Simple Moving Average on two occasions, with the most recent one occurred just today. Considering that the price is below the resistance area, a further decline can be expected, which might result in a price drop of 350 pips. This is because the support is located at 1.8060, and confirmed by 50% and 61.8% Fibonacci retracement level. At the same time, it corresponds to the average-price uptrend and downtrend trendline, which are crossing right at the 1.8060 support.
While this could be an ABC downside correction, it is also possible that GBP/AUD will continue a long term downtrend, but this can be confirmed only upon the clear break and close below the 1.8060 support.
Key support levels: 1.8217, 1.8060
Key resistance levels: 1.8492, 1.8525
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This week’s price broke below the 50 Simple Moving Average on two occasions, with the most recent one occurred just today. Considering that the price is below the resistance area, a further decline can be expected, which might result in a price drop of 350 pips. This is because the support is located at 1.8060, and confirmed by 50% and 61.8% Fibonacci retracement level. At the same time, it corresponds to the average-price uptrend and downtrend trendline, which are crossing right at the 1.8060 support.
While this could be an ABC downside correction, it is also possible that GBP/AUD will continue a long term downtrend, but this can be confirmed only upon the clear break and close below the 1.8060 support.
Key support levels: 1.8217, 1.8060
Key resistance levels: 1.8492, 1.8525
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.