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The British pound was seen trading lower not only against the US dollar, but also against a few other currencies, including the Euro and the Australian dollar. The British pound traders are now waiting for an important release in the UK i.e. the UK trade balance data will be released by the National Statistics. The market is expecting the trade deficit to decrease this time. So, if the outcome does not disappoint, then the pairs like GBPAUD might gain traction in the short term. It was seen trading higher earlier, and now it looks like it is correcting lower.
There was an important bearish trend line on the 1 hour chart of the GBPAUD pair, which was broken earlier during this week. The pair climbed towards the 200 hourly moving average where it found sellers. The pair is currently retracing lower and it looks like it is heading towards the broken trend line. An important point is that the broken trend line is now coinciding with the 50% fib retracement level of the last move from the 1.8198 low to 1.8427 high. Moreover, the 100 hourly moving average is also sitting around the same area. So, the 1.8320 can be considered as a critical support area. There is a chance that the pair might dip towards the mentioned support area and then trade higher again.
Alternatively, there is also a possibility that the GBPAUD pair could start climbing from the current levels. It depends a lot on the upcoming release in about an hour.
Overall, one might consider buying dips around the 100 moving average as long as the pair stays above the same.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com
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