Great Britian Pround versus Australian Dollar failed to break above the neckline/ resistance 1.8920 which was proceeded by a bearish reversal towards Senkou Span B of the ichimoku cloud and 38.20% fibo retracement level on the weekly levels at 1.8717 and 1.8595. Aussie Dollar took advantage of the cables weakness by driving it below exponential moving average 50 in the daily time frame and 38.2% fibo level while currently being supported by 1.8600 price action. On the four hourly time frame, GBPAUD couldnt generate bullish momentum enough to break above our minor degree of upper trend line and adapted to a bearish rally - proceeded by a closing below exponential moving averages 50 and 200 in daily time frame. The relative strength index in the four hourly time frame is below 50 while MACD is showing some temporary bullish reversal signs by achieving a few gains. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

After Great Britian Pound versus Australian Dollar failed to break above our upper trend line and the neckline/ resistance of the head and shoulder pattern at 1.8920, it was bound to fall below the exponential moving averages 50 and 200 in the four hourly chart while exponential moving average 50 in the daily chart. From the current market price action, we are expecting the pair to fall towards exponential moving average 200 in the daily time frame i.e 1.8480. For the bearish trend to continue, we need a closing below the aforementioned support line to open doors towards 23.6% fibo level i.e 1.8270. On the bullish side, the pair needs to break above our neckline/ resistance to the head and shoulder pattern for further gains towards 1.9000 and 1.9150. 

GBPAUD

Oct 04 2021