GBP/AUD: Inverted Rounding bottom pattern is forming

July 19 , 2019

 

By looking at the daily technical chart pair is heading towards south side as we can see many swings with a bearish flow, all these wipsaws are seems like a baloon for sellers and generating bearish signal as we can see that an inverted rounding bottom pattern is forming and pair is trading below all the major and minor EMA lines.

 

By applying fibonacci retracement line we can see that it has retraced 50% level already.The recent candle is bearish harami pattern along with bearish marabuzo candlestick which indicates that pair will move down towards the south side. The situation is favourable for bears as we can see that a downtrend line is also lying on the chart. Well the main eyes will be on today’s unemployment data which will open the door for either side.

 

 

 

Odds are in favor of bears and intraday bias remains bearish on the pair as long as 1.7750 level remains intact. The way bears are reacting it seems like they are approaching the 1.7500 level atleast, however some profit booking can’t be ignored  but that should be taken as selling opportunity for those who has missed earlier.

 

 

A bearish crossover on MACD indicator is supporting the bears and RSI is also favoring the bears from below 50 territory. The 1.7500 is immediate support level followed by 1.7450 level whereas 1.7750 level is immediate resistance level followed by 1.7850.

 

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