GBPAUD Bearish Continuation: Short Opportunity at Resistance
Updated
The pair is trading around 1.94808 at time of posting, presenting a potential short opportunity as it approaches resistance.
Resistance Zone:
The pair is testing the 1.9480–1.9500 resistance area, which coincides with the 50 EMA and 200 EMA acting as dynamic resistances.
Multiple bearish "3s-Bear" signals highlight selling pressure near this level.
Indicators:
The Stochastic RSI is approaching overbought territory, suggesting the upside momentum may weaken soon.
Volume remains relatively low, indicating a lack of strong buying conviction.
Entry Point:
Consider entering a short position at 1.9480–1.9490, after confirmation of rejection or bearish candlestick patterns (e.g., bearish engulfing).
Stop Loss:
Place the stop loss above the swing high at 1.9530 to account for volatility.
Take Profit:
Target 1: 1.9420 (immediate support level).
Target 2: 1.9350 (major support zone near the "Strong Low").
Risk-Reward Ratio:
This setup offers a favorable risk-reward ratio, assuming price respects the resistance and trends lower.
Notes:
If the price closes above 1.9530, the bearish scenario is invalidated, and the pair may continue higher toward 1.9600. Wait for confirmation signals before entering the trade.
Resistance Zone:
The pair is testing the 1.9480–1.9500 resistance area, which coincides with the 50 EMA and 200 EMA acting as dynamic resistances.
Multiple bearish "3s-Bear" signals highlight selling pressure near this level.
Indicators:
The Stochastic RSI is approaching overbought territory, suggesting the upside momentum may weaken soon.
Volume remains relatively low, indicating a lack of strong buying conviction.
Entry Point:
Consider entering a short position at 1.9480–1.9490, after confirmation of rejection or bearish candlestick patterns (e.g., bearish engulfing).
Stop Loss:
Place the stop loss above the swing high at 1.9530 to account for volatility.
Take Profit:
Target 1: 1.9420 (immediate support level).
Target 2: 1.9350 (major support zone near the "Strong Low").
Risk-Reward Ratio:
This setup offers a favorable risk-reward ratio, assuming price respects the resistance and trends lower.
Notes:
If the price closes above 1.9530, the bearish scenario is invalidated, and the pair may continue higher toward 1.9600. Wait for confirmation signals before entering the trade.
Note
This decline is influenced by ongoing geopolitical risks and concerns over proposed tariffs by President-elect Donald Trump, which have weighed on market sentiment.
Officials from Mexico, Canada, and China have warned that imposing heavy tariffs on goods could harm the economies of all parties involved, exacerbate inflation, and potentially damage job markets. These developments have contributed to the Australian Dollar's relative strength against the British Pound.
Technically, GBP/AUD has eased from the 1.9450 level, with immediate support seen at 1.9369 (38.2% Fibonacci retracement). A close below this support could open the way for a run towards the 1.9300 level. Immediate resistance is located at 1.9459 (50% Fibonacci retracement); any close above this level may push the pair towards 1.9557 (61.8% Fibonacci retracement).
In summary, the combination of geopolitical tensions, tariff concerns, and technical indicators suggests a bearish outlook for GBP/AUD in the near term.
Trade active
Trade closed: stop reached
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