GBP/AUD Price Analysis: Opening bid rallies into key resistance
|- GBP/AUD bears have received a discount in the week's opening bid.
- Daily charts offer a compelling downside case for the downside.
GBP/AUD has started out the week on the bid following a weekend of Brexit updates, but from a technical standpoint, it may have run right into the bear's lair.
The following is a top-down analysis that illustrates where the next swing trading opportunity might come from.
Monthly chart
The price was rejected at a key trendline resistance on a restest. A monthly head and shoulders offer an opportunity to the downside on the lower time frames.
Weekly chart
The weekly chart shows the price is testing a key double bottom area.
Daily chart
The daily chart's wick on the prior candle could well be filled in on the lower time frames in a downside extension.
4-hour chart
The price has rallied on the open to test the 38.2% Fibonacci retracement level with some room until the 21-moving average and a 50% mean reversion that meets higher volume nodes.
Resistance here could lead to an opportunity to the downside.
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