GBPAUD:- Multi Year Highs
GBPAUD:- Having broken past 1.8000 with no retracement insight the GBP went onto reach 1.8500 against the Australian dollar. These levels have not been achieved since 24th of July 2016 when the Gbp saw a rapid decline in price 22 months ago. What we could expect from here is a potential rejection from this region as the pair looks to retrace some of the recent powerful bullish movement seen against the Aud. Having spiked 1.8500 and rejected violently, a second attempt has seen the price once again drop a further 100 pips resting on the weekly mid-range of 1.8250. If this level can be broken below I strongly believe the pair will once again come and reach the major psychological boundary of 1.8000 in alignment with a C - leg retracement to our favouredFibonaccii region. A bearish daily closure on tuesday would indicate a bearish reversal signal and add further confluecne to the pair potetially delcining a further 250 pips to reach the 1.8000 monthly support region.
Previous:- Target Achieved! 1.8000 has now been achieved as price consolidated for an extended period of time retesting the lows of the range at 1.76250 before rebounding close to 400 pips to the upside in a matter of days fulfilling the upside projected target of 1.8000. The weekly closure, if maintained, will be extremely bullish and one to be aware of if there is no retracement from this region. If this was to occur we could see a further continuation and push to the upside breaking the monthly resistance and rise towards the 1.8250 level.
However, having previously rejected this level on 2 other occasions aggressively we may be wary of price having pullback before the day is to close.
As the trade set up and move is now complete, the focus for investors will now be on the next available setup. A break above would indicate further bullish price action or a retest and rejection of the 1.8000 level will occur. Either way price action will be the first indication we need to be aware of. All eyes on the weekly closure.