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FxWirePro: GBP/AUD breaks above 38.2% Fib, eyes channel top at 1.8725, stay long

GBP/AUD has shown a break above 38.2% Fibo and has taken out 1.84 handle. The major is currently trading at 1.8466, up 0.20% on the day. The pair is trading in a 'Rising Wedge' pattern and price has shown a break above 2…

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FxWirePro: GBP/AUD breaks above 38.2% Fib, eyes channel top at 1.8725, stay long
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  • GBP/AUD has shown a break above 38.2% Fibo and has taken out 1.84 handle.
     
  • The major is currently trading at 1.8466, up 0.20% on the day.
     
  • The pair is trading in a 'Rising Wedge' pattern and price has shown a break above 200W SMA at 1.8379.
     
  • Technical indicators on weekly charts are biased higher. RSI has edged above 70 levels and momentum studies are bullish.
     
  • We see +ve DMI dominance and ADX is rising in support of the uptrend.
     
  • On the daily charts the pair is rising in an upward channel and is on track to test channel top at 1.8725.
     
  • Decisive breakout at 200W SMA will likely propel the pair higher.
     
  • On the flipside, breach at 1H 110-EMA at 1.8327 could see dip till 20-DMA at 1.7990. Break below 20-DMA invalidates bullish bias.

Support levels - 1.84, 1.8381 (5-DMA), 1.83 (38.2% Fib), 1.82 (trendline), 1.8050 (Mar 19 low), 1.7990 (20-DMA)

Resistance levels - 1.85, 1.8723 (channel top), 1.9080 (50% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-AUD-hovers-around-major-trendline-resistance-18295-further-gains-only-on-decisive-break-above-1218804) is progressing well.

Recommendation: Bias higher, stay long.

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