GBP/AUD just got rejected from a key inflection point!
Will this mean a longer-term reversal for the pair?
I’m looking at the 1-hour chart for clues!
GBP/AUD: 4-hour
A couple of hours earlier, GBP/AUD got rejected and turned lower from the 1.8750 minor psychological handle.
And why not? As you can see, 1.8750 is right around the R1 (1.8720) of today’s Standard Pivot Points.
More importantly, it’s also near a previous support and resistance level that now marks a possible range resistance zone for GBP/AUD.
Will this mean more GBP losses against AUD?
The bearish divergence on the 1-hour time frame is giving “Let’s gooooo” vibes.
Before you push them sell buttons, though, you should also note that the 100 and 200 SMAs are hanging around near the mid-range levels AND today’s Pivot Point (1.8610) area.
If you really want to sell GBP/AUD, then you can do it right now to take advantage of the bearish downswing. You can then take profits as soon as it hits the mid-range zone or when GBP/AUD starts poppin’ up green candlesticks.
Feel like GBP/AUD would sooner bust above its range consolidation?
You can also place long positions, but you’ll want to do it once GBP/AUD makes a convincing bullish breakout above the resistance zones that we’ve marked.
Good luck and good trading this one!
