Who’s up for a easy pullback play at the moment?

I’ve bought this GBP/AUD textbook correction setup on my radar!

If you happen to suppose the development continues to be our pal on this pair, higher preserve your eyes on these potential help zones on the short-term time frames.

GBP/AUD 15-min Foreign exchange Chart by TV

GBP/AUD has been cruising increased with its rising lows linked by an ascending development line that’s been holding since final week.

The pair seems to be prime for one more check of help, which occurs to coincide with the 61.8% Fib degree, former resistance space, and S1 (1.9050) at a minor psychological mark.

Discuss confluence!

Technical indicators are pointing to development continuation, too. The 100 SMA is above the 200 SMA to replicate bullish vibes, with the latter holding as dynamic help proper across the space of curiosity.

Additionally, Stochastic is pulling increased after a fast dip to the oversold area, indicating that patrons are taking up whereas sellers take a break.

The oscillator has loads of room to climb earlier than reaching the overbought space, which signifies that GBP/AUD might have sufficient bullish strain going for a check of the swing excessive at R1 (1.9230).

Sustained upside momentum might even take it as much as recent highs at R2 (1.9330) and past.

Thus far, weaker than anticipated Australian CPI and largely downbeat updates from China are preserving a lid on AUD rallies. In distinction, the British pound is drawing some help from heightened BOE price hike expectations stemming from stubbornly sturdy U.Okay. inflation.

China has one other spherical of PMI readings arising earlier than the top of the week, so these is perhaps sufficient to affect AUD developments and total market sentiment.

Particularly, stronger than anticipated figures for the month of June would possibly dampen PBOC stimulus hopes and revive danger urge for food. A break under the development line or the important thing 1.9000 deal with could possibly be sufficient to invalidate GBP/AUD’s uptrend, so be careful for that!

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