GBP/AUD Uptrend Intact.
GBP/AUD: Last week saw price drop 150 pips to the downside for a brief period of time before swiftly retesting 1.7000 again. Fridays Daily closure saw another rejection from this critical region and closed extremely bearish. This has now left the 2 prior weeks looking extremely bearish having broken back below 1.7000 before retesting and rejecting violently. We could expect to see some further downside momentum upon a follow-through of the of the extremities of this price. 1.6900 remains a confirmed daily area of resistance for this pair and a potential sell zone upon a retest. We could expect the next weekly level of support to be hit upon this momentum continuation and further downside if this price can be broken.
The Royal Bank of Austalia has their monthly minutes meetings in which determines in-depth insights into the economic conditions that influenced the Interest rate decision. If the reports are perceived to be Hawkish we could see high volatility within the markets overnight.
Previous article: It was stated previously that a pullback down to the 1.6700 area was on the cards. However, the pair only managed to sustain lows of around 1.6800 throughout the temporary pullback.
Support was carved in at 1.6810, in which a new bullish leg formed shortly after into new highs. The next area to consider is the 1.7400 zone, then 1.7620 (May 10th highs). A reliable weekly closure will confirm further upside momentum, solidifying the first trend reversal that was the primary focus throughout August.