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GBP/AUD downswings move in channel, short rallies for tp 2.0030

FX:GBPAUD   British Pound/Australian Dollar
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Back to back bearish patterns on monthly graphs: We traced out bearish spinning top, gravestone doji and hanging man patterns at around 2.1549, 2.1552 and 2.1607 levels respectively. These bearish pattern are an extremely helpful for both long term investors and short term traders visually to see where resistance and supply is likely located and you can see their effects on daily price dips.

After an uptrend, the Gravestone Doji can signal to traders that the uptrend could be exhausted and that long positions should probably be exited. These price declines moving in downward channel taking supports at channel base to attempt of recoveries but not beyond channel resistance.

Since we always keep urging not to jump the guns, technicals should not be studied in an isolation. So other indicators should be used in conjunction with these bearish indications to determine an accurate sell signal. A potential trigger could be a break of the upward trendline support with this doji pattern.

Convergence on oscillators: To substantiate the bullish reversal stance, leading oscillators are also converging downwards with current falling price fluctuations; you can figure this out from monthly chart. The current prices have shown their impact of this bearish candle patterns on daily chart . The pair has fallen from the formation of 1st doji at 2.2370, even broken up to 2.0789 levels.

RSI on monthly is currently trending near 62. 2002             , while %D crossover on slow stochastic still maintains around 70 levels that signify bearish momentum is continuing in long run.

Daily price actions: Daily prices are well below moving average curve. We maintain our bearish stance on this pair as the current spot prices have been well below moving average curve that signals us long term bearish trend is on the cards.

The pair has pretty much responded as per earlier analysis as well and we could now foresee a little bit price bounces in near term as the daily chart suggest some buying interest that would result in some price recoveries but we maintain our target at 2.0380 levels in short run and towards further southern directions up to 2.0030 mark in medium run.
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