HomeContributorsTechnical AnalysisGBPAUD Hits 1.88 after 2 ½-Years; Gains Could be Limited in Short...

GBPAUD Hits 1.88 after 2 ½-Years; Gains Could be Limited in Short Term

GBPAUD entered the 1.88 zone twice this week after more than 2 ½-years but the market was unable to retain gains above this mark, with the price returning to the 1.87 handle instead. The MACD has rebounded to meet its red signal line but as long as the indicator holds below that line, the pair is less likely to show significant improvement, especially if this is accompanied by a steadier RSI. Besides, with the price trading closer to the upper Bollinger band, room for more gains is limited in the short term.

Should the bulls clear the 1.88 round level, the way would open towards the 1.89-1-91 region where the priced stopped several times during 2014-2016. In such a case, the upward pattern started on October 2016 would extend further, increasing investors’ appetite for more buying. Higher, the 1.9300 mark, taken from the highs on December 2014, could come next into focus.

In the negative scenario, the pair could slide back into the 1.8560-1.8470 area, with the supportive 20-day moving average attracting special attention. Below that the bears need to violate the 1.8390 level to challenge the 1.82 key number.

In brief, GBPAUD faces a positive-to neutral bias in the short term, while in the bigger picture, it is trading in positive territory above all its moving averages.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading