GBP/AUD Taking a dive, Where to next?
Good Afternoon Traders and welcome back to EverythingFX!
The Great British Pound is currently trading at 1.81240 against the Australian Dollar during today's London session.
Let's take a look at the higher timeframes for starts, what a bloodbath it has been for the pound since a rejection from our resistance of 1.85000. After having a major bearish engulfing off of the highs and with a retest once again of the highs and then closing back below the weekly key level of 1.82500, I do expect to see that follow through!
Dropping down to the daily timeframe we there again had a nice bearish spiking down to the lows of 1.81000 throughout yesterday's session. We have since had a spike in price and this was off the back of the EU coming out to say that they are potentially ready to make a Brexit concession which brought an immediate rush to the pound with optimism going forward, however, that was short-lived as there remains no actual proof of this or evidently no progress with the current deal that we have in place! On a 4-hour we saw a spike straight into 1.82000 round psychological level and an immediate rejection thereafter! Provided this follows through I would expect further downside with an intra-day target of 1.80000.
Bare in mind traders we are dealing with one of the biggest political issues the UK has ever faced so do trade this with caution. Stay tuned to our Market news section, Social media accounts and Twitter feed for further updates!