- GBP/AUD extends upside after gap-up open, eyes 20-DMA at 1.6373.
- Overall bias is lower. The pair is trading in a slopping channel. Finds stiff resistance at 4H cloud.
- Break above 4H cloud targets 20-DMA at 1.6373. We see reversal in downtrend only on break above 20-DMA.
- That said, the pound remains under pressure amid renewed UK political concerns surrounding the Brexit issue.
- On the downside, the pair is struggling to close below 78.6% Fib retrace of 1.5789 to 1.76509 rally at 1.6187.
- Break below likely to see test of 1.6040 (trendline and then 1.60 (88.6% Fib). Violation at 1.60 finds little support till channel base at 1.5895.
Support levels - 1.6208 (5-DMA), 1.6187 (78.6% Fib retrace of 1.5789 to 1.76509 rally), 1.6101 (88.6% Fib), 1.6040 (trendline support)
Resistance levels - 1.6281 (4H cloud top), 1.63, 1.6373 (20-DMA), 1.64
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
