GBP/AUD is back at a major area of interest!
Which way will the pair go in the next trading sessions?
Here’s what we’re seeing on the 4-hour time frame:
GBP/AUD: 4-hour
GBP/AUD 4-hour Forex Chart Faster with TradingView
Weaker U.K. labor market and inflation reports have kept a lid on pound demand, just as Sterling was starting to recover from the latest leadership drama around Prime Minister Starmer.
Aussie, meanwhile, is still getting support from better risk sentiment, mixed but not awful Chinese data, and a relatively more hawkish RBA.
That setup could shift in the next few trading sessions, though, with Australia’s inflation updates on deck.
GBP/AUD has staged a sharp recovery from its 1.8550 May lows and is now testing the 1.8800 to 1.8850 area. That zone is stacked with technical resistance, including the Pivot Point at 1.8780, the 78.6% Fib retracement, the 100 and 200 SMAs, and a key support area from March and April.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your 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!
A move lower from here could bring sellers back in, especially if GBP/AUD stays below the 200 SMA and that former support zone holds as resistance. Watch for sustained trading below 1.8800, which could drag the pair toward 1.8700 or even the 1.8550 previous lows.
On the flip side, a strong break above the resistance zone could put GBP/AUD on track for fresh May highs. Consistent trading above 1.8900 could open the door to a move back above the 1.9000 major psychological handle, then possibly toward 1.9100 or 1.9200.
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.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
This GBP/AUD setup is being shaped by the RBA’s relatively hawkish stance and upcoming Australian inflation data, and if you’re not familiar with how the RBA drives the Aussie, our lesson covers it. Premium members can read our lesson:
Reading this helps you understand how RBA policy decisions influence AUD, which economic indicators move the Aussie, and why Australian inflation data can shift the directional bias on pairs like GBP/AUD.
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