The GBP/USD pair is oscillating in a wide range of 1.2989-1.3056 since Monday, struggling hard to secure 1.3000. The pair has witnessed a sheer downside after printing March highs to near 1.3300. The cable is eyeing a trigger that may help in finding a direction going forward. However, the asset is going to witness heavy volumes and wider ticks soon.To get more news about idealing, you can visit wikifx.com official website.
On a four-hour scale, the asset has witnessed a steep fall after failing to overstep the 200-period Exponential Moving Average (EMA) at 1.3300. The pair is auctioning near the critical previous bottom, which is March 14 low at 1.3000. Usually, a decisive break below a critical bottom pushes the asset into a prolonged negative trajectory. The trendline placed from March 23 high at 1.3300, adjoining the April 5 high at 1.3167 will act as a major barricade going forward.
The 50-EMA is scaling lower, which signals more weakness ahead. Adding to that, the Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which indicates the continuation of a bearish move.
A confident drop below Friday’s low at 1.2982 will activate greenback bulls, which will drag the asset towards the 2 November 2020 low at 1.2854, followed by round level support at 1.2800.
On the contrary, sterling bulls may dictate the prices if the asset oversteps April 7 high at 1.3106 decisively. This will push the pair towards the April 4 high at 1.3137. A breach of the April 4 high will send the asset towards the round level resistance at 1.3200.AUD/USD forms a potentially bullish hourly structure with the price recovery from fresh daily lows marking higher territory into the 0.7420s. The bulls will be looking to guard 0.7420 old resistance as fresh support for a continuation into the Frankfurt open with an objective to close above 0.7432 as being the current 4-hour resistance structure.
From a technical perspective, the overnight strong move up validated a near-term bullish breakout through the 0.7375-0.7380 resistance zone. A subsequent strength beyond the 0.7400 mark and the previous YTD high support prospects for additional gains. With technical indicators on the daily chart holding in the bullish territory and still far from being in the overbought zone, the pair seem all set to reclaim the key 0.7500 psychological mark. This is closely followed by the top end of an upward sloping trend-channel extending from the YTD low touched in January, around the 0.7515 region. Some follow-through buying will be seen as a fresh trigger for bullish traders and pave the way for an extension of the recent strong move up witnessed over the past one-and-half week or so.
On the flip side, any meaningful pullback now seems to find decent support and attract fresh buying near the 0.7400 mark. This, in turn, should help limit the downside near the 0.7380-0.7375 resistance breakpoint. Failure to defend the said support levels could trigger some long-unwinding trade and accelerate the slide further towards the 0.7300 round-figure mark. The pair could eventually drop to the next relevant support near the 0.7260 area.