GBP/AUD is on the verge of deeper correction

Alena Afanaseva Independent Analyst

FXstreet.com (Moscow) - GBP/AUD started the trading week on a softer note and moved below the resistance area of 1.8300 right from the start, as the bears are eager to show who is running the show here.

Watch out for Head-and-Shoulders

From the technical point of view the GBP/AUD is on the verge of deeper correction as the cross has formed the head and shoulder pattern on the daily charts. The break below 1.8256 is needed to confirm the model completion. GBP/AUD has come vary close to this level today morning as the current intraday low is 1.8261. The upside dynamics is likely to be contained below 1.8300. Australian home loans and investment lending data came out slightly better than expected, though it is hardly the factor behind the move. It is all about post-Non Farm Payrolls reaction and stops, triggered below 1.8300. No fundamental data of interest is published today so keep an eye on the above mentioned technical levels level, if the crosse breaks the resistance level at 1.8300, we may spend still more time in the range.

What are today’s key GBP/AUD levels?

Today's central pivot point can be found at 1.8395, with support below at 1.8229, 1.8135 and 1.7969, with resistance above at 1.8489, 1.8655, and 1.8749. Hourly Moving Averages are bearish, with the 200SMA at 1.8446 and the daily 20EMA at 1.8346. Hourly RSI is neutral at 27.06.

Author

Alena Afanaseva

Independent Analyst

Alena joined FXStreet in 2014 as an Asia News Editor, having previously fulfilled senior research and analysis roles at a number of Russian brokerage houses.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD tests daily lows near 1.1380; focus on ECB Forum

EUR/USD remains under pressure below 1.1400 on Wednesday amid extra gains in the US Dollar. In addition, softer-than-expected inflation data in Germany and the Euroland fuel expectations of a less aggressive ECB, contributing to the downside mood.

Gold clings to daily gains beyond $4,000 ahead of Warsh

Gold manages to regain composure and advance past the key $4,000 per troy ounce on Wednesday, reversing two daily drops in a row. The yellow metal’s decent bounce comes despite uncertainty surrounding Iran and growing expectations of a Fed rate hike continue to support the Greenback for now.

ISM Manufacturing PMI expected to signal continued expansion in the US

Attention shifts to Wednesday’s release of the June ISM Manufacturing Purchasing Managers Index, one of the most closely followed indicators of activity in the US manufacturing sector and an important barometer of the broader economy. Markets expect the headline index to remain unchanged at 54.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The European Central Bank Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Federal Reserve, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.