Patterns: GBP/AUD GBP/CAD
|GBP/AUD 4H Chart: Potential bullish sentiment
The British Pound has been driven by a strong downside momentum against the Australian Dollar since the beginning of August, and thus sending the currency pair to plunged by 537 base points. This bearish sentiment began on August 3, after the pair tested the 200-hour simple moving average and the weekly R2 near the 1.7783 mark and reversed south.
However, during the past few days, the exchange rate made a U-turn from a support cluster set by the combination of the weekly and the monthly pivot points near 1.7323.
Everything being equal, it is likely that the GBP/AUD currency exchange rate continues it bullish momentum until it retests the 200-hour SMA.
GBP/CAD 4H Chart: Target near 200-hour SMA
The Pound Sterling has been depreciating against the Canadian Dollar in a steep descending channel. This movement has been guided by a four-month junior descending channel.
During the past few days, the 55-hour simple moving average has pushed the currency pair towards the lower boundary of a dominant ascending channel. However, this decline stopped by the weekly S2 at 1.6647.
As for the near future, it is likely that the exchange rate makes a northern movement towards a resistance cluster formed by the weekly, the monthly PPs and the 55-hour SMA at the 1.6921 regions during the following trading sessions.
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