GBP/AUD Price Analysis: Bulls on the stampede towards daily structure
- GBP/AUD bears are losing grip as the bulls challenge their commitments at hourly resistance.
- Bulls can target a 61.8% Fibonacci retracement of the latest daily bearish impulse.
GBP/AUD is consolidating in a strong monthly bearish topping pattern. Withing the price action, there are bullish conditions being made as the price moves up from support to challenge resistances with an eye on the daily structure.
The following is a top-down analysis that illustrates where the bulls are in control from a 30-min perspective.
Monthly chart
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The monthly chart is bearish given the massive head and shoulders pattern and a downside continuation can be expected at this juncture.
However, from the lower time frame's perspectives, there are opportunities to the upside in a correction of the latest daily bearish leg.
Daily chart
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The price is stalling on the daily time frame which gives rise to a Fibonacci retracement that meets prior lows between the 61.8% and the 50% mean-reversion targets.
30-min chart
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The bulls can be engaged towards the daily target from within the bullish territory amplified with the parting of the 10 and 21 SMAs.
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.
