GBP/AUD Down 132 Pips, Breaks Below 20 and 50 Averages; in an Uptrend Over Past 14 Days

GBP/AUD Price Recap

GBP/AUD is down 132 pips (0.69%) since yesterday (with its current price near 1.89189), marking the 3rd day in a row it has gone down. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 2.97% from the day prior, but up 6.74% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/AUD ranked 39th yesterday in terms of percentage price change. Here is a price chart of GBP/AUD.

GBP/AUD Technical Analysis

Notably, GBP/AUD crossed below its 20 and 50 day moving averages yesterday. 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 14 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 7 out of the past 14 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPAUD, with 2 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 0.4, 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.

Wait for price to get back inside channel and pullback to top line of channel….Then we can get short position….(The Price Action reverse candels are the best alarms to get position).