GBP/AUD 2 Day Down Streak Ended; Pin Bar Pattern Appearing on Chart

GBP/AUD Price Recap

GBP/AUD is up 13 pips (0.07%) since yesterday (with its current price near 1.9315), marking the 2nd day in a row it has gone up. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 0.9% from the day prior, but down 0.84% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/AUD ranked 14th yesterday in terms of percentage price change. Below is a price chart of GBP/AUD.

GBP/AUD Technical Analysis

Coming into today GBP/AUD is now close to its 20, 50 and 100 day averages, located at 1.9201, 1.9083 and 1.8875 respectively, and thus may be at a key juncture along those timeframes. Volatility for GBP/AUD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 14 days GBP/AUD’s price has gone up 7 them. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPAUD, with 16 buy signals on our radar and 23 sell signals. This imputes a buy/sell ratio of 0.7, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on; below is a short snippet from it to give you a taste.

As mentioned in previous analysis, price has been reversed from daily channel and now it is correcting the previous bearish momentum….Now we are waiting for breakout of the corrective structure as a confirmation to enter the short position….Will update the trade in case of breakout as soon as we enter the position.