GBP/AUD tested major resistance today

24. August 2015 · Write a comment · Categories: EDGE Chart of the Day · Tags:

Amid all the chaos in today’s equity markets, we have also seen some intense volatility in the Forex market in recent trading sessions. Some traders cite the relentless march of the EUR/USD higher was the big news in the currency market. However I think even the more interesting news is that some of the commodity crosses touched, broke, tested some major levels on the crosses. For example, the GBP/NZD finally tested (and held) a massive downtrend line and inverted H&S target today. Read this post from May of this year.

Another pair that I find extremely interesting is the GBP/AUD. What you will notice is that we have tested (and held) a major Fibonacci resistance level today on a weekly basis.This pair has been a fun long trade in recent months but may struggle with some resistance as seen below:

8-24-15GBPAUD

I believe three things currently that could weigh on this pair. 1) The GBP currency has been drug (tooth and nail) higher with the EUR’s rise against commodity and emerging market currencies. 2) I believe the EUR/USD is due to correct from its recent rise which may lead to a correction in the GBP. 3) I think stocks have the ability to bounce in the coming days, which tends to lend support to commodity currencies like the AUD, which may also lend to a correction of the GBP/AUD.

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

 

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GBP/AUD set to rally if AUD CPI comes in weak

21. April 2015 · Write a comment · Categories: EDGE Chart of the Day · Tags: , ,

Tonight at 9:30PM ET Australia is set to report CPI data, and as you can see below inflation has consistently ticked lower the last few quarters:

4-21-15AUDCPI

 

The GBP/AUD has been in a tight consolidation recently, and as you can see (blue lines) we have have had some very consistent rallies while in this solid up channel (yellow):

 

4-21-15GBPAUD

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I do not have a position in the GBP/AUD currently, but may establish a trade after tonight’s data release

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GBP/AUD Bull Flag in a Bull Flag

05. November 2014 · Write a comment · Categories: Uncategorized · Tags: ,

The GBP/AUD is attempting to break a out in a bull flag pattern, while in a weekly bull flag pattern. Here is the daily chart:

11-5-14GBPAUD

What you may notice, the bull flag is already in process on the longer time frames as well. The most recent highs of 1.8681 will offer the near term resistance, but if broken the 1.9184 (1.9211) level will be the major resistance for the weekly bull flag pattern as seen below:

11-5-14GBPAUD2

If the 1.9211 (38% weekly Fibonacci level) breaks it could open the door for a move toward 2.20 in 2015.

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I am not long the GBP/AUD but plan on establishing a long in the next 72 hours.

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