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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:

GBP/AUD: 4-hour

GBP/AUD 4-hour Forex Chart

GBP/AUD 4-hour Forex Chart

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.

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