Last time we discussed the GBP/AUD pair we recommended selling the pair at 1.6480 and we have taken our profit at 1.6310 with +170 pips profit. Today we will discuss the pair again to find another opportunity to make profits.
To begin with, the pair is still trading inside the price channel formed last May, which may lead the pair to further lows. The pair has a key resistance area represented at the downside trend line which exists now at 1.6295. The prices tried to break it up several times last week but it didn’t work. The moving average is trading above the prices and close to the upper limit of the channel. The Stochastic indicator began giving us the sell signal on Friday, and the Republic Bank of Australia kept the cash rate today at 1.5%, so we didn’t see any big change in the prices because it was expected that the rate won't change.
The Next Few Days
Based on this analysis, we have to keep our negative vision for the pair in the next few days. We can sell it now at the current level at 1.6239 and we can take another sell order if it reaches the moving average level. We need to keep our first target at 1.6069 and the second one at the bottom 1.5879, that is in case the pair is still trading inside the price channel.
This week the market has some hot news from Australia such as RBA governor Lowe's speech today, the GDP figures tomorrow and the retail sales on Thursday, in addition to the Manufacturing Production from the UK on Friday.
