GBPAUD has gained little this week but it managed to hold above the 20-day simple moving average (SMA) and re-enter the 1.9400 area, however, the technical indicators feed prospects for a possible improvement in the near term. The RSI indicator is flattening in the bullish area, while the stochastic is heading north, approaching the 80 level. That said, the red Tenkan-sen line keeps falling slightly above the blue Kijun-sen line, reflecting the recent pause in positive momentum.

A failure to overcome the 1.9400 psychological numbercould send prices down to the 20-day SMA currently at 1.9280 ahead of the 23.6% Fibonacci retracement level of the upward wave from 1.7560 to 1.9750 near 1.9230. Below these, the 1.9160 support area could halt downside movements before re-testing the six-month uptrend line near the 40-day SMA and the Ichimoku cloud around 1.9060.

On the other side, if 1.9400 proves easy to overcome, the spotlight would turn to the three-and-a-half-month high of 1.9750, reached on January 31. A successful run higher could push the pair until the next resistance, which is coming from the 2.0500 level, signaling strong buying interest.

- advertisement -

In the medium-term picture, GBPAUD is gently pointing up over this week, framing a positive profile. A strong rally above the three-and-a-half-month high of 1.9750 would extend the upward pattern, making the outlook even more bullish.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.