GBP/AUD Down 30 Pips On 4 Hour Chart, 3 Day Down Streak Ended; Pin Bar Pattern Appearing on Chart

GBP/AUD 4 Hour Price Update

Updated June 22, 2020 01:09 PM GMT (09:09 AM EST)

The choppiness in the recent four-hour candle price action of GBP/AUD continues; to start the current 4 hour candle, it came in at a price of 1.8023, down 30 pips (0.17%) since the last 4 hour candle. Compared to its peers in the Forex, GBP/AUD gave its buyers a return that ranked 31st in terms of percentage change since the last 4 hour candle.

GBP/AUD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/AUD, which opened today priced near 1.8067, is up 6 pips 0.04% since the day prior, marking a reversal from the day prior — and the end of a 3 day negative run. Relative to other instruments in the Forex asset class, GBP/AUD ranked 10th the day prior in terms of percentage price change. The price chart of GBP/AUD below illustrates.

GBP/AUD Technical Analysis

The first thing we should note is that GBP/AUD is now close to its 20 day moving averages, which may act as price barrier for the asset. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 168.1 pips away. Volatility for GBP/AUD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. For additional context, note that price has gone up 7 out of the past 14 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPAUD, with 9 buy signals on our radar and 19 sell signals. This imputes a buy/sell ratio of 0.47, 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 tradingview.com; below is a short snippet from it to give you a taste.

GBPAUD is approaching a strong support of a weekly ascending channel.I’m excpecting the price to reach 1.98000 our key level.let’s see how it will play out.