GBP/AUD has just been rejected from a major inflection point!
Will this mean a long term reversal for the pair?
I’m looking at the 1 hour chart for clues!
Forex GBP/AUD 1 hour Planned by TV
Two hours earlier, GBP/AUD was rejected and turned bearish from the simple psychological handle at 1.8750.
why not? As you can see, 1.8750 is right around the R1 (1.8720) of today’s standard pivot points.
More importantly, it is also close to a previous support and resistance level that is now a potential range resistance area for the GBP/AUD.
Does this mean more losses for the British pound against the Australian dollar?
A bearish divergence on the 1-hour time frame gives “Let’s gooooo” signals.
Before you hit the sell buttons, though, you should also note that the 100 and 200 SMAs are hanging near the mid-range levels and pivot point area (1.8610) today.
If you really want to short the GBP/AUD, you can do so now to take advantage of the bearish swing. You can then take profits once it reaches the middle band area or when GBP/AUD starts to lift green candles.
Do you feel that GBP/AUD will soon collapse above its range consolidation?
You can also place long positions, but you will want to do so once the GBP/AUD makes a convincing bullish breakout above the resistance areas we identified.
Good luck and good trading this one!