HomeContributorsTechnical AnalysisGBPAUD Holds Above Key Support Area

GBPAUD Holds Above Key Support Area

  • GBPAUD consolidates above key support zone
  • RSI and MACD detect negative momentum
  • But a break below 1.8900 is needed to darken the outlook
  • A rebound above 1.9350 may invite more bulls

GBPAUD has been trading in a consolidative manner lately staying above the key support area of 1.8900, which prevented the bears from drifting south on several occasions during the last 12 months. However, the pair is also trading below a downward sloping trendline, suggesting that it may be a matter of time before we see a dip below 1.8900.

The RSI is lying below 50, but it is pointing up, while the MACD, although negative, has bottomed and crossed above its trigger line. Both indicators detect negative momentum, but they corroborate the notion that it is too early to start examining the case of further declines.

A break below 1.8900 could be the move that will give the green light to the bears, perhaps allowing extensions towards the low of December 27, at around 1.8580. A break lower could aim for the 1.8395 zone, marked by the low of April 18.

For the picture to start looking positive, a move above 1.9350 may be needed. GBPAUD would already be above the aforementioned downtrend line, and the bulls may feel confident to climb towards the key resistance zone of 1.9515.

Summarizing, GBPAUD is hovering above the key support zone of 1.8900, the break of which may invite more bears into the action.

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