GBP/AUD Price Analysis: Bears in control and seek break of 4-hour support structure
- GBP/AUD is brewing up a bearish opportunity as the stars align.
- The 4-hour chart, however, has a support structure to clear first.
GBP/AUD has been in a weekly decline and is on the verge of a downside extension according to the weekly and daily charts.
The following is a top-down analysis of the price action's trajectory all the way onto a 4-hour chart which illustrates where the next bearish opportunity could be derived.
Weekly chart
The weekly chart is bearish and price would be expected to continue to the downside following the restest of resistance.
Daily chart
The market has retraced a significant portion of the bearish impulse and by as much as a 61.8% Fibonacci retracement.
A downside opportunity in a bearish continuation would now be expected to present itself sometime soon on the 4-hour chart.
4-hour chart
As illustrated, there is plenty of structure that the market needs to break to the downside before a convincing opportunity will reveal itself.
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.
