The British Pound has declined significantly against the Australian Dollar after the currency pair pulled back from a resistance level formed by the monthly pivot point at 1.8700.
The exchange rate breached the lower boundary of a two-month ascending channel pattern and the monthly PP at 1.8080 during the early hours of Monday’s trading session.
If this support level holds, the currency exchange rate could aim at a resistance cluster formed by the 50– and 200-hour SMAs at 1.8281 during the next 48 hours.
On the other hand, if the rate passes the support level as mentioned earlier, bearish traders could target the weekly S1 at 1.7963 within this session.
The exchange rate breached the lower boundary of a two-month ascending channel pattern and the monthly PP at 1.8080 during the early hours of Monday’s trading session.
If this support level holds, the currency exchange rate could aim at a resistance cluster formed by the 50– and 200-hour SMAs at 1.8281 during the next 48 hours.
On the other hand, if the rate passes the support level as mentioned earlier, bearish traders could target the weekly S1 at 1.7963 within this session.
Note
The British Pound has lost about 4.61% of its values against the Australian Dollar since the beginning of October. This decline began after the currency pair reversed from a high mark of 1.8734 on October 10.
A one-month descending channel pattern has been guiding the exchange rate lower towards the lower boundary of a dominant descending channel at 1.7600.
Everything being equal, it is likely that the GBP/AUD currency exchange rate maintains the descending channel pattern during the following trading sessions.
The potential target for the pair will be at the bottom border of the dominant ascending channel in the coming days.
Note
The Pound Sterling has been depreciating against the Australian Dollar since the currency pair reversed from a swing high of 1.8777 on October 11.
The exchange rate breached a support cluster formed by the combination of the weekly, the monthly, and the 50-hour simple moving average at 1.7697 during the morning hours of Tuesday’s session.
From a theoretical point of view, it is likely that the currency exchange rate continues its downward movement with this session.
If this decline continues, a potential breakout through the lower boundary of a dominant ascending channel is likely to occur during the following trading sessions.
Note
The Pound Sterling reversed from the lower boundary of a dominant ascending channel at 1.7200 on December 3 and started gaining strength against the Australian Dollar.
The currency pair was trading near the upper border of a medium-term descending channel pattern at 1.7700 during the morning hours of Monday’s trading session.
If the exchange rate breaks the descending channel pattern, it will aim at a resistance cluster formed by the weekly and the monthly PPs near the 1.7892 regions.
However, it is important to note that the political situation in the United Kingdom might play a significant roll in the positioning of the currency exchange rate during this week trading sessions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.