GBP/AUD Price Analysis: Bearish Head and Shoulders for swing-trade opportunity
|- GBP/AUD consolidates between key structures on the monthly, weekly and daily chart.
- Bears looking for prospects below daily support for confirmations.
GBP/AUD has printed a long wick within a monthly right-hand shoulder of the Head and Shoulders.
This wick is expected to be filled-in on lower time frames which could equate to a medium-term bearish breakout.
The following is a topdown analysis starting from the monthly chart, then weekly and daily.
Monthly chart (i)
At this juncture, the price has been building a right-hand shoulder which could result in a break below the current support structure.
Monthly chart (ii)
If there is not an immediate upside move back to the counter trendline, the wick will be filled in on a lower time frame.
Weekly chart
The above is the price action within the wick which meets a fresh resistance structure.
If this holds, there are the prospects of a downside breakout.
Daily chart
The daily chart is somewhat more convincing on the downside but there is little to be done until the support structure is broken at which point the 4-hour chart can be monitored for a bearish technical environment.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.