Is GBPAUD starting to look bullish?


The GBPAUD cross has been falling nonstop for many weeks. However, it looks like it might have found its bottom (at least from the short-term perspective) as there are a couple of bullish signals on the chart right now. 

On Monday EU morning, it was seen somewhat higher, trading at around 1.81850.

There is a triple bottom formation on the short-term chart (1h - 2h), which is a sharp reversal formation. Moreover, the price has jumped above June's bearish trend line, which could also be a bullish signal. Finally, the cross is heavily oversold on the daily time frame as it has been sold-off steeply. All these signals combined could lead to a short-covering rally. 

If the GBPAUD cross breaks above the short-term resistance of 1.8250, we could see a more substantial relief rally, targeting 1.8450, where previous highs and lows are converged.

Alternatively, if the downtrend persists, the support seems to be at around 1.8170. Another level to watch will be at the mentioned triple bottom, which is seen at 1.805. A breakdown below this level would most likely lead to further selling below the 1.80 threshold. 
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.