Last week the GBP/AUD pair declined by more than 170 pips to touch and test 1.6670 which has ben a support level for the price in the last months. Meanwhile, the moving average 50 was at the same area, so the pair returned back to surge again and we saw Friday’s candle swallowed Thursday’s one to form a reversal pattern. Although in our last report we recommended buying the pair and it didn’t hit our target, we’re still keeping the same outlook after returning back from this level.
The pair is trading in an upside wave after breaking the channel to make new highs higher than September’s top. This week the pair got the green light to start the rally, so let’s take a look at the H4 chart to see it clearly.
The pair was trading in a price channel for three weeks and broke it up yesterday, so we can buy it at this level.
The Next Few Days
After this analysis, we have taken a positive vision after breaking the short-term channel in the H4 chart, so we can take a buy order now at 1.6925 and keep our first target at 1.7130 and the second one at 1.7270. That is in case the pair is still trading above 1.6670 and the moving average 50 on the daily chart.
Tomorrow we have lots of news that will affect the pair like the CPI from Australia and the Prelim GDP from the United Kingdom, so be careful in trading due to the volatility in the markets, especially today.
