GBP/AUD Completes a Short-term Double Top

by Admin

Awards 2013

GBP/AUD 4H chart 4/17/2013 8:40AM EDT

GBPAUD

Double Top: The 4H GBP/AUD chart shows a market that has established a bottom in March and broke above it in April. This week, it rallied and briefly cracked the previous 1.4827 high before forming a double top. As we get into the 4/17 US session, the market has completed this double top with a break below 1.4737. It looks like there is a chance for at least some very short-term bearish correction.

Support: At the moment, the 4H RSI shows bullish overall momentum as long as the reading holds above 40. So if the RSI reading gets close to 40, anticipate support. As far as price, if it comes down to the previous bottom’s resistance around 1.4620 it will also likely test a newly established rising support. These factors should give the market reason to find support here. If there is support here, the bullish outlook remains intact, though still young.