GBP/AUD 4H Chart 12/18/2012 9:52AM EST


Channel Support, double bottom: As a follow up to the previous GBP/AUD update, we are are seeing the anticipated bullish scenario develop with price rising from a rising channel support, as well as extending higher after a completed double bottom, seen in the 4H chart.

Not that bullish:
Although this rally is within a rising channel, it is not exactly part of an uptrend. The alignment, and general down-sloping to sideways direction of the moving averages suggest the bullish market is still young, and has not shaken off the preceding bearish signs.

Still, there seems to be room in the near-term toward at least the 1.5454 December high. A break above his high exposes the next resistance pivot at 1.5631. These bullish targets are in play unless there is a break back below 1.5350, which is now becoming a key pivot. Still the bearish outlook should be shelved unless there is a break below 1.53 and the rising trendline.