The Reserve Bank of Australia kept interest rates for AUD on hold. The move was anticipated but still led to a sudden appreciation of AUD, making pairs like GBPAUD extremely attractive for margin traders.
The current formation of the GBPAUD currency pair suggests the construction of a large downtrend that moves within the bearish green channel. During the last month, the price has been moving from the lower green line towards the upper green line. The last section of the chart describes an ascending channel of yellow color.
Not so long ago, the price pushed off from the intersection point of the upper walls of the two channels green and yellow. Now we are approximately in the center of the yellow channel. In the current situation, there are two possible scenarios.
The first option assumes a continuation of the fall in value to the lower green line. However, on the bears’ way, we see the lower yellow wall. The bears first need to overcome the support level of 1.839. Only if this level is broken, the price can continue to decline to the lower green line and the support level of 1.801.
In the second option, it is assumed that the price may turn around and the bulls will have a chance to take over the market. In this case, the price is expected to move to the upper green line and the resistance level of 1.889. If the bulls can break through this level, then the currency pair will continue to move in an upward direction to the upper yellow wall and the resistance level of 1.900.
An approximate scheme of possible future movement is shown in the chart.
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