GBP/AUD Testing a Price Bottom

by Admin

Awards 2013

GBP/AUD 4H Chart 4/10/2012 9:18AM EDT


Bottom: The GBP/AUD has consolidated through most of March, and popped up above this “price bottom” to start April off. However, the rally found resistance just after cracking 1.48 and is now slightly more than 61.8% retracement as seen in the 4H chart. This is testing the resolve of bulls in holding the price bottom as such.

At the moment, the technical condition would be sideways to slightly bullish as price looks to be initially respecting the “central pivot area”. The upside continuation in the short-term has the 1.4860-1.4880 resistance area in sight. However a break below 1.4474 is neutral to slightly bearish, with the price bottom invalidated.

Momentum: The 4H RSI shows that the bullish momentum established by the bullish break is now being tested as the reading came back from above 70 to 40. Holding above 40 reflects maintenance of the bullish momentum. Otherwise, we become neutral. And with the prevailing trend bearish, it would be neutral to bearish.