GBP/AUD Down 52 Pips, Nears 20 Day Moving Average; Doji Pattern Appearing on Chart

GBP/AUD Price Recap

1.93687 (USD) was the opening price of the day for GBP/AUD, resulting in yesterday being a day in which price moved down 52 pips 0.27% from the day prior. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 36.84% from the day before — and down 51.7% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/AUD ended up ranking 34th for the day in terms of day-over-day price change. Here is a price chart of GBP/AUD.

GBP/AUD Technical Analysis

The first thing we should note is that GBP/AUD is now close to its 20, 50 and 100 day moving averages, which may act as price barrier for the asset. Related to the moving average crossover is that GBP/AUD may have broken its trend on the 30 day basis, as the trend’s momentum appears to be slowing down. 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 90 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. Also, candlestick traders! Note we see doji pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPAUD, with 23 buy signals on our radar and 14 sell signals. This imputes a buy/sell ratio of 1.64, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

HERE IS MY ANALYSIS FOR GBPAUD….I’M EXPECTING A PULLBACK FROM THE CURRENT MARKET POINT TO MY KEY SUPPLY/DEMAND ZONE, THERE I’D EXPECT THE AREA TO BE RESPECTED AND ACT AS NEW SUPPORT, IF PRICE ACTION SHOWS THIS IT WILL BE A GOOD OPPORTUNITY FOR A LONG POSITION TO BE TAKEN….IDEALLY PREVIOUS HIGHS WOULD BE SWIPED AND POTENTIALLY RISING FURTHER.