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.

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