FxWirePro: GBP/AUD shooting stars arrest consolidation phase, both minor and intermediate trend wedged on struggling momentum

Shooting stars have occurred at 1.7812, 1.7773 and 1.7759 levels on the daily chart, and at 1.7687 and 1.7646 levels on monthly plotting.

The bearish patterns signal weakness in the consolidation phase of this pair, the interim bulls struggle for momentum as both leading indicators are indecisive but slightly tilted downwards.

The trend is stuck in range despite interim rallies, for now, the upswings may extend upto next stiff resistance at 1.7930 levels.

As you could probably observe on monthly plotting, the bull swings seem to have been absolutely exhausted at channel resistance. Ever since then, the trend has gone non-directional.

As a result, the current prices are hovering at 7EMAs despite ongoing rallies. In this process, the triple top formation has occurred with top 1 at 1.7173, top 2 at 1.7650 and top 3 at 1.7996 levels.

For today, the bullish rally is not convincingly supported by both leading and lagging indicators, thus, trend and momentum in this bullish sentiment has still been dubious.

The lingering bears are all set to break below strong support zones 1.7595 levels that’s been testing for the last 5 and half months.

Any decisive break below these support zones with bearish EMA crossover indicates the extension of further price slumps, consequently, the triple top formation would be confirmed as both the leading & lagging indicators to favor selling interests since they constantly converge downwards to the price dips.

On the other hand, MACD on daily plotting has also been indicative of the prolonged bearish travel.

Trade tips: Contemplating above technical reasoning, amid ongoing rallies but restrained below 1.7805 (3-days’ highs) and 1.7698 levels acting as the strong support, at spot reference: 1.7772, one can speculate this pair by buying boundary binary options using above-stated levels as two strikes.

Currency Strength Index: FxWirePro's hourly GBP spot index has turned into 100 (which is bullish), while hourly AUD spot index was at shy above -88 (bearish) while articulating (at 12:56 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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