GBP/AUD Down 20 Pips in Last 4 Hours, Makes Big Move Relative to Two Week Trend; Entered Today Down For the 3rd Day In A Row

GBP/AUD 4 Hour Price Update

Updated June 19, 2020 09:24 AM GMT (05:24 AM EST)

GBP/AUD is down 20 pips (0.11%) since the previous 4 hours (opening the current 4 hour candle near 1.8095), marking the 8th candle in a row a decline has happened. Out of the 37 instruments in the Forex asset class, GBP/AUD ended up ranking 28th for the four-hour candle in terms of price change.

GBP/AUD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/AUD is down 10 pips (0.06%) since yesterday (opening today near 1.81185), marking the 3rd day in a row a decrease has occurred. Relative to other instruments in the Forex asset class, GBP/AUD ranked 34th yesterday in terms of percentage price change. The price chart of GBP/AUD below illustrates.

GBP/AUD Technical Analysis

Coming into today 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 144.1 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. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone down 8 out of the past 14 days. 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 25 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 1.56, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Beautiful support trendline that dates back to November 2018….If GBPAUD bounces here, which I’ve seen almost exact touches on the 15m candles, I think it will have strong enough momentum to also break the more recent downtrend, continuing up from this support….Daily candles looking like they’re on the second leg of a double bottom.