- GBP/AUD is trading in a 'Rising Wedge' pattern and price has shown a break above 'Wedge Top' at 1.8295 in last week's trade.
- The pair is currently trading in an extremely narrow range and finds major resistance at 200W SMA at 1.8378.
- 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.
- Breakout at 200W SMA at 1.8378 will likely propel the pair higher. Scope then for test of 1.8655 (major trendline).
- On the flipside, 5-DMA at 1.8290 is immediate support, break below will see test of 20-DMA at 1.7925. Break below 20-DMA invalidates bullish bias.
Support levels - 1.8290 (5-DMA), 1.82, 1.8050 (Mar 19 low), 1.7925 (20-DMA)
Resistance levels - 1.8378 (200W SMA), 1.8655 (trendline), 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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