After the recent fundamental developments in the UK the British Pound has jumped. However, the move was expected on the larger scale charts.
The GBP/AUD is no exception to the just described rule. It can be observed on the daily timeframe chart that the pair had closely traded near the lower trend line of a long term support line. Meanwhile, the 23.60% Fibonacci retracement level at the 1.62 mark was supporting the trend line.
As a result the surge could have been expected. However, it seems that the jump is about to be over, as the pair is approaching a strong resistance cluster near the 1.70 mark.
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The Pound recently encountered a strong resistance cluster against the Australian Dollar. As a result of the bounce off a junior channel down pattern has formed.
First of all it has to be noted that the descending channel most likely is just a representation of a move inside a more dominant pattern. If one looks closely, it can be noticed that the rate had found support in an unidentified support level on September 20.
If that level gets passed the rate should decline down to the weekly S3 at the 1.6715 mark. The move would occur in accordance with the channel down pattern.
1.72 is the level, I reckon for a perfect H&S pattern and a [possible reversal in the pair..while 1.38 for GU where 1.38 was previous support before brexit..
UnknownUnicorn890690
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@RyanVarghese, It could be possible because the upper trend line of the new, speculated channel up pattern has not been fully confirmed yet. Or it could just slow down the surge, as it creeps up to the 1.72.