There are disagreements under the terms the Brexit again
In this review, we want to consider the dynamics of the currency pair British Pound against the Australian dollar. Is there a possibility for GBPAUD quotes to reduce?
Downward movement means the weakening of the British pound against the Australian dollar. The disagreement over the conditions of the UK exit from the European Union have a negative impact on the pound. The British Prime Minister Theresa May announced that she is against the extension of the transition period. The Brexit should happen March 29, 2019. There is a risk that final agreements between the UK and the EU will not be signed. The quotes of the Australian dollar are growing due to the rise in prices for export goods and high demand from China.
On the daily timeframe, GBPAUD: D1 left the uptrend and is trying to adjust downwards from a june 2016 high. The further price decrease is possible in case of the publication of positive economic news in Australia, and negative one in the UK.
-
The Parabolic indicator gives a bearish signal.
-
TheBollinger bands have widened, which indicates high volatility. They are titled downward.
-
The RSI indicator is below 50. It has formed a negative divergence.
-
The MACD indicator gives bearish signals.
The bearish momentum may develop in case GBPAUDfalls below its last low at 1,823. This level may serve as an entry point. The initial stop loss may be placed above the last fractal highs, the 2-year high and the Parabolic signal at 1,873. After opening the pending order, we shall move the stop to the next fractal high following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level (1,873) without reaching the order (1,823), we recommend to close the position: the market sustains internal changes that were not taken into account.
Summary of technical analysis
Position |
Sell |
Sell stop |
Below 1,823 |
Stop loss |
Above 1,873 |
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
USD/JPY flat-lines below 151.50 after soft Japanese CPI data
USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold flirts with record highs above $2,230, all eyes on US PCE data
Gold price flirts with record highs around $2,230 during the Asian session on Friday. The uptick of yellow metal is bolstered by the safe-haven flows amidst growing economic concerns and the prospect of interest rate cuts from the US Federal Reserve.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.