Is the trend still our friend on GBP/AUD?
The pair is testing a neat confluence of technical support levels, suggesting a bounce could be due.
Check out these potential targets on the 4-hour time frame.
GBP/AUD: 4-hour
GBP/AUD 4-hour Forex Chart Faster with TradingView
Rising gilt yields weighed heavily on sterling in the past trading sessions after new U.K. Prime Minister Burham unveiled a fiscal plan aimed at reviving the economy.
On the flip side, the Australian dollar appears to be enjoying some support from risk-taking, as well as positive expectations for the country’s employment report.
Can GBP/AUD still resume its uptrend?
GBP/AUD is sitting right on its ascending trend line that’s been connecting higher lows since mid-May. This happens to coincide with the 50% Fibonacci retracement level and S2 (1.9070) near the 1.9100 major psychological handle.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the British pound and the Australian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Should buyers decide to defend this area of interest, the pair could set its sights back on bullish targets at the pivot point (1.9260) then the swing high in line with R1 (1.9360). Sustained upside momentum could even take price up to fresh highs at R2 (1.9460).
On the other hand, long red candles breaking through the trend line support and the 61.8% Fib could clear the way for a test of the next psychological floor at 1.9000 then a move towards the bearish targets at S3 (1.8970) or S4 (1.8880).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
This GBP/AUD setup leans on trend lines, Fibonacci retracement levels, and pivot points to map out potential bounce zones, tools you may not be using together yet. Premium members can read our lesson:
📖 How to Identify Reversals and Retracements
Reading this helps you understand how Fibonacci levels and pivot points confirm each other, how a trend line break can signal more than just noise, and how to judge whether a pullback like this one is likely to hold or give way to a deeper reversal.
And if you’re not a Premium subscriber yet, now’s a good time to sign up.
With Babypips Premium, you get full access to School of Pipsology lessons that help you understand not just where a level sits on the chart, but how to tell a genuine reversal from a pause on the way to fresh highs or lows.
