© Dukascopy Bank SA
GBP/AUD's outlook is mixed. On the one hand, there is a good chance the pair will end up climbing after confirming the reversal double bottom pattern. This idea is favoured by 4H technical studies and 53% of SWFX traders. On the other hand, bullish majority over the bears is unstable and the long-term signals are predominantly pointing to the South. On top of that, the bulls will inevitably confront the 200-period SMA and the monthly pivot point at 1.90. There the Sterling faces a risk of another selloff in the direction of current pattern's valleys at 1.8593 and 1.8490. However, by breaching this formidable resistance GBP/AUD will get a chance to extend the rally past the monthly R2 at 1.9377.
© Dukascopy Bank SA