GBPAUD breaks to the upside today

View Comments

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.  

4 Comments

  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.

Top

© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.