The monthly trend on GBPAUD is bullish, will this see the price reach 1.9100 highs?
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The GBPAUD price is in a strong upward trend heading towards the highs of 2022 at 1.9100. The Australian Dollar seasonal analysis shows us that the currency is weak throughout this time of year. In fact, history tells us that May is one of the worst performing months of the year. This could give us ideas to look for the Australian Dollar to weaken. The Bank of England is potentially going to continue to hike interest rates, if inflationary pressures continue. This could keep the GBP strong against the likes of the AUD.
The price of GBPAUD on the monthly time frame can be seen to be breaking out of multiple resistance zones. This includes a long term trend line and most recent highs of 1.8150. Buyers could now be looking to target the next key level of resistance at 1.9100. When the market is in an impulsive phase on a higher time frame, we can often see a trend develop on a lower time frame. The daily time frame in this instance shows price making higher highs and higher lows. Currently price is at previous highs, but if it retraces back to the minor demand zone, we could see buyers step in again.
The price on the chart has traded through multiple technical levels and some observations included:
- Price is trading within a strong monthly upward trend.
- Buyers could be looking to target previous highs at 1.9100.
- Trades could look for pullbacks on the daily time frame, into previous levels of demand.
Have you watched our EURJPY analysis? You can see it here.
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