GBP/AUD 1H Chart: Pound approaches channel line
GBP/AUD was driven by upside momentum in September that resulted in the pair peaking at its three-month high circa 1.72. This bullish sentiment changed in October, as the rate has since slid down to the 1.6850 mark.
The given movement downwards has resulted in the formation of a descending channel. The Pound was trading near its upper boundary with slight volatility on Monday, as it was trying to move below the 200-hour SMA at 1.6862. Another support area set by the weekly and monthly PPs, the 38.2% Fibo and the 100– and 55-hour SMAs is likewise located nearby.
It is expected that the general direction of the rate should be downwards, as technical indicators are moving from their two-week highs.
However, given the strong support area, it is likely that the bearish sentiment fails to prevail for long and thus paves the way for a surge. Thus, the lower channel boundary might not be reached, but the rate could reverse somewhat lower, possibly circa 1.67.
The given movement downwards has resulted in the formation of a descending channel. The Pound was trading near its upper boundary with slight volatility on Monday, as it was trying to move below the 200-hour SMA at 1.6862. Another support area set by the weekly and monthly PPs, the 38.2% Fibo and the 100– and 55-hour SMAs is likewise located nearby.
It is expected that the general direction of the rate should be downwards, as technical indicators are moving from their two-week highs.
However, given the strong support area, it is likely that the bearish sentiment fails to prevail for long and thus paves the way for a surge. Thus, the lower channel boundary might not be reached, but the rate could reverse somewhat lower, possibly circa 1.67.