In our previous analysis we had emphasized on the head and shoulder pattern being formed in the daily time frame - followed by a strong bearish breakout below the neckline at 1.8770, driving the pair below 1.87000 key price action. Australian Dollar losing its strength again which favored the bulls by boosting the Cables towards upper neckline i.e 1.8920. Great Britian Pound versus Australian Dollar is currently being supported by 38.2% fibo retracement level - along side 1.8720 price action. From the current market position and chart structure under the daily time frame, GBPAUD needs to break above the 1.8920 price action in order to tag 1.9000 resistance zone - which would trigger the continuation of bullish trend because the aforementioned maneuver wouldve invalidated the head and shoulder pattern.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The exponential moving average 50 and the 1.8767 daily support level on the daily chart are acting as a strong barrier, preventing the pair from providing a breakout below which would be the confirmation to the bearish rally being triggered in accordance to the head and shoulder structure. Breaking down to four hourly time frame, we can see that the daily price action has been breached on a temporary note after GBPAUD is swiftly letting bulls take the control and raising prices above the exponential moving average 50 and 200 on the four hour chart. The current stance is indicating that the pair will be providing us with a touch down at 1.8950 before considering to adapt to any long term trends or impulsive breakouts. In case GBPAUD broke above 1.8950 weekly resistance, this would open doors towards further gains by driving the pair at 1.9000 - 1.9150.

GBPAUD

Sep 27 2021