GBP/AUD 1H Chart: Pound tests long-term pattern
GBP/AUD has been trading in a flat channel down since mid-2016. Also, two additional channels have prevailed within this senior pattern.
After halting near the 1.62 mark and thus failing to reach the lower boundary of the senior channel in August, the Pound has since pushed up to the 1.76 area. This level coincides with the upper boundaries of both long– and medium-term channels.
Despite testing 1.76 last Tuesday, the pair has since remained near this mark. This suggests that bulls might not yet be ready to give up their positions. Moreover, technical indicators likewise favour further advance during the next week.
If the 1.76 area is breached, the rate might push up to 1.78 mark where the weekly R3 and the monthly R2 are located. On the other hand, a reversal of the 1.76 area is likely to guide the Pound towards the monthly PP at 1.7131.
After halting near the 1.62 mark and thus failing to reach the lower boundary of the senior channel in August, the Pound has since pushed up to the 1.76 area. This level coincides with the upper boundaries of both long– and medium-term channels.
Despite testing 1.76 last Tuesday, the pair has since remained near this mark. This suggests that bulls might not yet be ready to give up their positions. Moreover, technical indicators likewise favour further advance during the next week.
If the 1.76 area is breached, the rate might push up to 1.78 mark where the weekly R3 and the monthly R2 are located. On the other hand, a reversal of the 1.76 area is likely to guide the Pound towards the monthly PP at 1.7131.