Patterns: GBP/AUD, GBP/CAD
|GBP/AUD two scenarios likely
The GBP/AUD currency pair bounced off a support level formed by the 50– period simple moving average at 1.8564 on July 20. As a result, the British Pound has surged by 175 pips or 0.95% against the Australian Dollar since last week's trading sessions.
The exchange rate is currently trading near the upper line of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the weekly R3 at 1.8870 could be expected during the following trading sessions.
However, if the channel pattern holds, bearish traders could drive the currency exchange rate lower during the coming days.
GBP/CAD decline likely to continue
The Pound Sterling fell by 1.20% against the Canadian Dollar last week. The decline was stopped by the 200– period simple moving average at 1.7215 during last week's trading sessions.
All things being equal, the exchange rate could continue to edge lower. A breakout through the lower line of an ascending channel pattern could occur within the following trading sessions.
However, the 200– period SMA at 1.7215 could provide support for the currency exchange rate this week.
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