FOREX Chart Of The Day: GBPAUD Rejects Monthly Level
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
In this video, we’re going to take a look at GBP/AUD. We’re going to take a look at the potential for the market to move to the upside. I really like this market for a number of different reasons.
One of the first reasons if we just jump onto this monthly time frame, is the fact that we’ve broken through recent lows and look to be closing back above now.
Typically when I see these types of patterns, I would expect a continuation to the upside. Not only that, we’ve got some seasonal bias because in the past we’ve seen September through to October. We’ve seen a decent rally up which is this sort of transition through here. It’s sort of this transition through there, with that little bit of movement to the upside, and also through here as well.
Typically we see the market rally through these months. So seeing this monthly close bullish after breaking and closing through those lows there suggests to me that we could see a little bit of upside.
Now, where can we see that upside going to is going to be the question. But also if I just place a horizontal line here. We can see it’s a really nice support level running through here. But also what I’ll be aware of is this zone just through there, because the market has for some whatever reason found resistance here, found support here.
If the market does start pushing to the upside, we could expect a retest of this zone just through there. Now, if we go to the daily time frame price is just bursting to the upside currently there’s not really been any kind of pullbacks.
Now that could mean one or two things. It could mean that the market is just super strong against the Australian Dollar, which we’re looking to sell so we are looking for buys on this market.
However, I would like to see a bit of a pullback now. Pullback could be just into sort of this zone here, where the market has found support, resistance, a number of occasions through here. We could get a deeper retracement back into this sort of area.
But if I go and take a look at the four-hour the trend on the four-hour is really strong at the moment. So we may not even get that pullback that we’re expecting into this zone because what I can see here is the fact that the market made higher highs, just rallied, come back in and now he’s starting to break into higher highs again.
If we get a secondary close-up of this high, imagine what we could see is a pullback just into this area here. Maybe that 1.82 level, and then a continuation of that move higher. We may not even see a re-test of this zone.
Keep an eye on GBP/AUD quite like the opportunity here for some upside. Just looking for that monthly to close bullish, looking for that rally up, keeping on the daily time frame, and the four-hour trend.
If you like to try the four-hour trend, look for the markets to pull back into previous structure points and continue to press to the upside. I like this area here. Look for the lungs off of that and see if we can get some good moves on this.
Thanks for watching this video update. I’ll catch you in the next one.
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