The GBPAUD has been since around the beginning of 2013 and that doesn't look likely to change anytime soon, with a relatively weak Aussie against the growing safe haven of Europe, the British Pound.
Since September 2014 price has been following this nicely and sure enough as the week closes, we see absolutely no reason for that not to be any less true than before. A BIG ended the week but what makes this particularly significant is its location.
Following the current we can see that it crosses the 1.9000 weekly , more or less, where price has retraced, with the long lower shadow crossing both lines. To add to this confluence; drawing the appropriate shows that the 0.618 level lays on top of the 1.9000 support, creating a wonderful barrier for price to break through before it can go short, not impossible of course, but.... Unlikely.
So here are our 4 obvious factors of confluence -
1. HUGE Low Test/Hammer Pattern
2. 1.9000 Support Rejection
3. 0.618 Fib Retracement
Those of you not happy with this and wanting more confirmation, I suggest the daily, where you'll see cloud cover, a and a candle for the end of the week.
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