GBPAUD has been in a bearish trend, forming lower highs and lower lows. The bearish structure needs to retrace till the resistance level of 1.7800, from where we will be looking to short the market. Our take profits on this trade would be at the support level which is at the 1.7600. So basically, we are anticipating a 200 pip dip on the GBPAUD.

Although we see strength on GBP but AUD remains stronger than the GBP.

The descending trendline has two pivot points which have been formed and is still above the current market price action. The trendline has a higher probability of being retested and rejected instead of being broken out for buys. Regardless, we have a confluence of a resistance with the trendline for shorts.

The golden retracement level falls on the resistance level with the confluence of 75-78.6% levels. This retracement can act as a slip off level for GBPAUD as we have two factors previously in confluence with each other and third being the retracement golden area.

Both the EMA’s are bearish with a bearish death cross. After the breakout sell, EMA 50 remains untested and has the potential to further come back till the resistance level and form some sort of a rejection in order for the market to continue moving down. The retest at the resistance has a lot of technical factors in confluence with the EMA 50.

Oscillators are below the neutralized levels, in the bearish region. The RSI being at 32 and CCI at -90. Given that market needs to retrace at the resistance level, we will see how the oscillators act at this point in time where the market maybe forming a bearish divergence or some bearish momentum building.

GBPAUD bearish continuation

Mar 24 2022

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