GBPAUD breaks to the upside today

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The GBPAUD broke to new highs today. The price bottomed last week against the 200 day MA and the 38.2% of the move down from the October 2011 high to the low reached in February (see chart above). The move higher today also took out a triple top that formed from the end of March at the 1.5503 area.  Staying above this level, keeps the bulls in charge.

Looking at the intraday chart below the pair has clearly trended higher today. On corrective moves, I will be looking for support from buyers on dips toward the 1.5515 to 1.5527 area.  IF the price is breaking away from the 1.5503 area, I would expect early dip buyers in this area with stops below the 1.5500 level.  


All|Technical Analysis


Greg Michalowski


  1. What effect is this having or will have on the AUD/USD?

  2. Is this a “cup and handle” formation, now breaking above the “lip”?

  3. Well if the GBPAUD takes off to the upside, that should pressure the AUDUSD as well (assuming overall AUD weakness). AUDUSD is down today but not by much. Suggesting the bulk of the action is from the GBP strength.

  4. Whenever I look and Head and Shoulders or Cup and Handle I do have to blur my vision sometimes. Honestly, I do not know a lot about that formation or it’s implications. I assume it is bullish and targets a level higher. What I do know is the pair broke above the ceiling at 1.5503 area today, and if that break has legs and supporters, it should stay above that level from a technical perspective. The correction off the high, held support at the 1.5515-27 area. So all systems are go for the bulls. Let’s see if the buyers continue to overwhelm the sellers.


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