As in the previous post of AUDCAD we explained some fundamentals which were weakening the Australian dollar in terms of the The Reserve Bank of Australia deciding not to change the interest rates for the Delta variant of Covid has hit the nation hard like a tsunami with death tolls reaching high on the graphs with vaccination program not being efficient enough to tackle the decline in economic indicators. When it comes to the fundamentals which are supporting the Australian dollar can be mentioned such as Economic activity support a strong aussie

Aussie to profit from higher commodity prices

Australian growth achieves a 60-year milestone

Aussie have the front seat to the economic growth in China

Rising equities and commodities support the aussie

Australia reports employment data considerably better than economists forecast

The recession is technically over and the economy is coming back

Now when we look at the weekly chart of GBPAUD, we can see a strong resistance which is a hindrance in the pairs way to provide any bullish momentum to Pound, though it stands above all the daily moving averages but has greeted another obstacle in its way named as 38.2 fibb level, which will definitly increase the chances of a dive towards the intraday moving averages. 

As mostly i mention extended complex corrective structure, the weekly time frame of GBPAUD is a very good example of that, though their can be witnessed an exit to the bears and welcome to the bulls but unless we find a breakout above the current market price, we are more concerned towards 1.8160 and 1.7840 levels being achieved. 

Another possibility for trades is to wait for EMA 50 and intraday EMAs 8, 13 and 21 to be met after which if a bullish impulse is found - would be expected to mark the trend of a bullish rally in process. 

GBPAUD meeting a strong resistance and price action zone

Jul 09 2021

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