Patterns: GBP/AUD, GBP/CAD
|GBP/AUD 4H Chart: Stranded between support and resistance
The GBP/AUD currency pair has been trading in a triangle-Like formation since early July. The Pound Sterling tested the upper boundary on July 12 and reached the bottom border two weeks ago.
The exchange rate is currently stranded between SMAs and pivot points. The 55– and 100-hour SMA and the monthly PP was providing resistance at 1.7739, while the 200– hour simple moving average and the weekly pivot point were providing support at 1.7722.
Everything being equal, a breakout is likely to occur within this session. Technical indicators favour bearish breakout.
GBP/CAD 4H Chart: Bearish market
The British Pound has been losing strength against the Canadian Dollar in a steep descending channel. This movement has been guided by a four-month downtrend channel.
During the past few days, a breakout through the lower border of an ascending trendline had occurred as can be seen on the chart. Furthermore, the 55-hour simple moving average has been directing the currency pair lower since July 16.
Technical indicators flash bearish signals on both the 4H and the daily time-frame. This could suggest that the GBP/CAD currency exchange rate is likely to continue moving In the descending channel during the following trading sessions.
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