What to Watch: GBP/AUD

in forex •  2 months ago  (edited)

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Since I’m looking for opportunities to catch another wave lower, I’m still eyeing pound pairs for today.
The 61.8% Fib level is keeping gains in check, so the GBP/AUD pair appears ready to resume its decline. The pair may fall back to the swing low below the 1.6000 major psychological mark if sellers return right here.
However, the pullback could reach higher levels because stochastic has a little bit more room to climb before reaching the overbought area.
The next area of potential resistance is the 1.6900 level, which is in line with an earlier support zone that was spanned by the moving average dynamic inflexion points.
The fact that the 100 SMA is below the 200 SMA suggests that the path of least resistance is to the downside or that pound bears will likely return to action soon.
In the London session, there are no significant reports due from the UK, and it appears that the BOE’s efforts to calm markets were ineffective.
In the meantime, the Australian retail sales report will be out in the next Asian trading session, so this pair may experience more volatility then.

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