The price of GBPAUD has broken out of a key level of resistance, will the price continue to trade higher?
Watch the video to learn more…
The price of GBPAUD has broken through the key monthly highs around 1.8150 and continued
to trade higher. This could see the price rally into the next level of resistance which is the 1.9100 highs which formed back in Feb 2022.
In the news this week the Bank of England Governor Bailey is set to speak at the London School of Economics. He is speaking at the Centre for Macroeconomics so he is likely to discuss the economy or policies surrounding it.
The RBA’s chances of pausing rate hikes in the next meeting have dwindled as inflation remains high in Australia. The RBA has increased interest rates to 3.60%, the highest level in over a decade. The Australian 10-year government bonds have dropped from the 4.00% highs in December. If this continues the AUD could weaken further as bonds look to fall below 3.25%.
The price on the chart has traded through multiple technical levels and some observations included:
- The price has broken through key highs at 1.8150 – 1.8300.
- If the price retests these highs as support, traders looking to go long could identify bullish reversal patterns.
- Buyers could be looking to target the key highs at 1.9100.
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