GBP/AUD is poppin’ up long wicks near a range resistance area.
Will the pair draw enough bearish pressure to stay inside its technical pattern?
Or will the bulls force an upside breakout?
GBP/AUD 4-hour Forex Chart by TradingView
The British pound had a solid week, getting a boost from the BOE’s slow and steady take on rate cuts despite a weakening labor market.
On the other hand, the Aussie struggled as traders shifted their focus to U.S. tariff risks, but a weaker CPI print kept RBA rate cut hopes alive, which could be just what the Aussie economy needs.
Will this week’s themes encourage risk-takers to turn to the Australian dollar and take profits from their Sterling holdings?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the Australian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/AUD has been climbing since mid-June but is now butting heads with the 2.1000 psychological level.
Can you blame the bulls for hesitating? That area lines up with the Pivot Point at 2.0946 and marks the top of a shorter-term ascending triangle pattern.
If red candles show up and the pair slips below the Pivot Point line, enough bears might drag it down toward 2.0856 or even the 2.0800 zone.
But if the bulls push past resistance and hold it, we could be looking at a run toward 2.1100 or the R2 line at 2.1165.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
