GBP/AUD 1H Chart: Triangle

Following a strong surge of the Sterling against the Australian Dollar in the early stage of the pattern, the price has been gradually reducing its trading range, resulting in appearance of the triangle on an hourly chart.

However, just a few bars ago GBP/AUD fell through the rising support line down to the 200-hour SMA, meaning that the bias towards the pair turned negative and the long-term moving average may not be able prevent a deeper decline, either to the daily S2 at 1.7289 or even to the daily S3 at 1.7252. While near-term studies are in favour of such a scenario, signals on a daily time-frame are largely the ‘buy' ones.