GBPAUD Weekly Technical Outlook
GBPAUD has been in consolidation for a few weeks around a resistance zone. Last week, price action printed a bearish pinbar around the resistance. This indicates the likelihood of a southward disposition of price action. A likely target for bears is a retest of the support trendline (black) from the low of August 2017.
On the daily time frame, price action is operating in an ascending wedge (black). However, since the beginning of 2018, price action has been respecting an inner support trendline (red) from the low of January 11, 2018. Since late March 2018, price action has been in a consolidation around the distal part of the wedge. Last week Friday, a strong bearish engulfing candlestick was printed by price action which spanned the high and low of the consolidation zone. We may expect bears to take price action further southward in the days ahead. A first target for bears is likely to be the inner support trendline (red) or the minor horizontal support around the 1.79640 area.
On the H4 time frame, it can be seen that the location of recent price action is far from the mean. Therefore, we may expect a northward pullback before further southward continuation. Such a pullback is likely to target the 1.83320 area, which is around the 50 Fib zone of the bearish engulfing candlestick formed last week Friday.
I may be wrong. Trade safe and prosper.
KP
GBPAUD has been in consolidation for a few weeks around a resistance zone. Last week, price action printed a bearish pinbar around the resistance. This indicates the likelihood of a southward disposition of price action. A likely target for bears is a retest of the support trendline (black) from the low of August 2017.
On the daily time frame, price action is operating in an ascending wedge (black). However, since the beginning of 2018, price action has been respecting an inner support trendline (red) from the low of January 11, 2018. Since late March 2018, price action has been in a consolidation around the distal part of the wedge. Last week Friday, a strong bearish engulfing candlestick was printed by price action which spanned the high and low of the consolidation zone. We may expect bears to take price action further southward in the days ahead. A first target for bears is likely to be the inner support trendline (red) or the minor horizontal support around the 1.79640 area.
On the H4 time frame, it can be seen that the location of recent price action is far from the mean. Therefore, we may expect a northward pullback before further southward continuation. Such a pullback is likely to target the 1.83320 area, which is around the 50 Fib zone of the bearish engulfing candlestick formed last week Friday.
I may be wrong. Trade safe and prosper.
KP
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