I’m seeing a simple reversal formation on the 4-hour chart of GBP/AUD.
It looks like the pair is closing in on the neckline already, so better keep an eye out for these levels:
This currency pair made a couple of failed attempts to break below the support around the 1.7200 mark, creating a double bottom formation right here.
Better brace yourselves for a reversal from the downtrend, fellas!GBP/AUD is already closing in on the neckline of the chart pattern while the moving averages made a bullish crossover, hinting that an uptrend might follow soon.
Worsening COVID conditions and tighter restrictions in China appear to be weighing on the higher-yielding Aussie, so the odds might be in favor of an upside break.
In that case, the pair might be in for a climb that’s approximately the same height as the reversal formation, which spans 650 pips.
Just be careful when hopping in a long position because Stochastic is already hovering at the overbought territory, reflecting exhaustion among buyers.
If the neckline resistance around 1.7850 holds, GBP/AUD could go for another test of support around the bottoms.
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.