GBP/AUD traded lower during the Asian morning today, but hit support at 1.9220, slightly above the upside support line drawn from the low of January 14th, and during the European morning, it rebounded. As long as the rate continues to trade above that line, we would consider the near-term outlook to be cautiously bullish. However, we would like to see the rate violating some key resistance barriers before we get more confident on larger upside extensions.
We prefer to wait for, not only a break above 1.9415, but also above the 1.9465 hurdle, which is marked as a resistance by an intraday swing low formed on January 30th. Such a move may allow the bulls to target the 1.9545 barrier, marked by the high of that day, the break of which may carry larger bullish implications, perhaps paving the way towards the peak of January 31st, at around 1.9750.


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