It’s a tug-of-war between bulls and bears on GBP/AUD! On the daily time frame, we see that the pair is on an uptrend as evidenced by the rising trend line that it is trading on. There are handful of reversal candlesticks that formed around the area which may suggest that support will once again hold. However, it’s noteworthy to point out that price has been unable to close above the 200 SMA.
Candlesticks that materialize in the next few days will give us more insight on where GBP/AUD is headed. A close below July’s low at 1.7974 could mean that we would soon see the pair trade around 1.7800. On the other hand, a break above the 200 SMA may lead to a rally up to the 100 SMA at 1.8200.
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