The BOE’s “hawkish cut” and the RBA’s latest dovish announcement are allowing GBP/AUD to keep its head above the long-term ascending trend line.
Could it go for more gains next?
Check out this consolidation pattern I’m watching on the daily time frame.
GBP/AUD 4-hour Forex Chart by TradingView
GBP/AUD has also formed lower highs and found support around the 2.0500 major psychological mark, creating a descending triangle pattern that’s been holding since March.
Price is testing the resistance just above the pivot point level (2.0650) and could be setting its sights higher.
Just how high can it go if we see an upside breakout?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the British pound and the Australian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The next bullish target appears to be R1 (2.0880) then R2 (2.1210) and R3 (2.1440) near the triangle highs at the 2.1500 major psychological handle.
On the other hand, if the triangle resistance keeps holding, GBP/AUD could be in for another dip back to nearby support levels at the triangle bottom and long-term ascending trend line.
Just be sure to look out for a break below this area, which could set off a drop to the bearish targets at S1 (2.0320) in line with the 200 SMA dynamic support then S2 (2.0090).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
