The minor trend of GBPAUD was stuck in the range between 1.7930 and 1.7595 levels, but for now, after testing strong supports at range baseline, rallies spike sharply above DMAs with bullish crossover and managed to break-out long lasting range from 1st February.
The range resistance is now broken-out with a stern bullish candle with the big real body and with intensified bullish momentum on daily terms.
While on intermediate trend, the consolidation phase seems to have been exhausted exactly at rising channel resistance, both leading and lagging indicators indecisive on this timeframe although the current price spike above EMAs (refer weekly plotting).
The bearish patterns (such as potential gravestone doji on dailies and failure swings at channel resistance signals shrinking buying momentum in the consolidation phase of this pair, however, both lagging indicators show bullish crossovers to signal bullish crossovers that indicate upswings to extend further.
Trade tips: Contemplating above technical reasoning, amid ongoing rallies but restrained below 1.8266 (near 2-days’ highs) and 1.8273 levels likely to act as the strong support, at spot reference: 1.8170, one can speculate this pair by buying boundary binary options using above-stated levels as two strikes. You rest assured with the certain but leveraged payoffs as long as underlying spot FX remains between these two strikes on expiration.
Alternatively, one can stay long in futures contracts of near month tenors with a view to arresting further potential risks.
Currency Strength Index: FxWirePro's hourly GBP spot index has turned into 73 (which is still bullish after UK CPI prints at 2.7%), while hourly AUD spot index was at shy above -21 (bearish) while articulating (at 11:28 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
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