FxWirePro: GBP/AUD lingering around trendline – uptrend to persist

One can easily make out from the daily technical charts of GBPAUD, the price fluctuation has been lingering with the below channel line where it has been consistently finding supports and bouncing towards north, thus far we have also been firm on our earlier targets of 2.2085 levels as continued uptrend is foreseen until those levels.

It is a clear rounding bottom considering previous downtrend on monthly charts as well, hence saucer pattern to prolong in long run which should evidence a long term uptrend. While we were designing long term hedging framework 14 week RSI was used with an objective to track price momentum over medium to long term perspectives.

Despite the strength index curve approached 80 levels (i.e. overbought territory) it was moving in convergence with rising prices. For a swing trader it is all too easy to be carried away by a market that apparently knows no bounds.

While slow stochastic on the other hand has remained in overbought territory and it is signifying slight indecision but there is no harm for strength in current prices.