GBP/AUD Price Analysis: Bulls looking for a daily H&S completion
- GBP/AUD has been in a strong downtrend on the longer-term charts but has found a base at critical support structure.
- The price can be expected to hold and turn higher.
- Price action is bullish and a bullish case is on the cards judging by the currency price action.
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Both GBP and the Aussie have picked up a bid in the wake of a fresh cycle low in the US dollar.
From a technical standpoint, there is a bullish case building for the cross and the following top-down analysis unveils a swing trading forecast and probable forward-looking price action to take advantage of from a daily perspective.
Monthly chart
The monthly chart shows a clear target at a 38.2% Fibonacci retracement of the bearish monthly impose which has confluence with prior structure.
The weekly chart below confirms the upside bias when considering the stop hunt below structure and the bullish bar as subsequent of the market price action.
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Daily chart
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The daily chart shows that there is still some accumulation to be done prior to offering conviction for a favourable risk to reward swing trade.
A bullish head and shoulders would be the result of a pullback to test the structure at this juncture.
The first structure is marked at prior corrective highs which guards a run to the weekly Fib target.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
