HomeContributorsTechnical AnalysisGBPAUD Hits The Upper Bollinger Band, Bullish Forces Persist

GBPAUD Hits The Upper Bollinger Band, Bullish Forces Persist

GBPAUD powered back higher after its early November low amid strengthening positive momentum. The price is currently located above the 50- and 200-day simple moving average (SMA), reinforcing the bullish short-term sentiment. However, the pair is trading near its upper Bollinger Band indicating that an immediate pullback should not be ruled out.

Short-term momentum indicators are supporting a positive bias as the RSI is found above its 50 neutral mark, while the MACD is found above zero and above its red signal line.

Should the bulls remain in charge, initial resistance might be found at the 1.8960 level. Surpassing this barrier could open the door towards the 1.9153 obstacle. A decisive move above this point could strengthen the pair’s positive momentum, sending the price to test its March 2020 low of 1.9288.

On the flip side, if the price crosses below the 1.8772 level, immediate support might be found at the 1.8525 barrier. A break below that point could send the pair to test the 50-day SMA currently at 1.8474, before sellers shift their attention towards the 200-day SMA currently located at 1.8407. Breaching the latter could intensify the selling pressure, paving the way towards the 1.8250 obstacle.

In brief, despite the fact that the latest upside move seems overextended, the short-term outlook for the pair is bullish. For sentiment to change, sellers would need to break below the 200-day SMA.

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