GBP/AUD Tests Crucial Support After Australian Inflation Data
26 June 2024
Today's inflation numbers from Australia have significantly impacted pairs with the AUD. Let's examine an excellent trading opportunity with the British Pound to AUD (GBP/AUD) pair. Since the end of 2023, this pair has been moving sideways within a long-term symmetric triangle pattern, marked by green lines. Earlier in June, the price bounced off the upper line of the triangle, and just a few days ago, it rebounded off the lower line. However, today's session shows sellers taking control, attempting to break below the triangle's lower boundary.
A breakout below this lower line would typically signal a strong sell. However, caution is advised because the price remains above the crucial horizontal support marked in yellow around 1.89. As long as the price stays above this yellow area, a long-term sell signal is not confirmed. The definitive sell signal will be triggered only if the price closes a day below this yellow support.
If the price remains above the yellow area, buyers still have a chance for a bounce. A bullish candlestick pattern, such as a hammer or a bullish engulfing pattern around this support, could signal a potential buy. Therefore, while the sentiment may lean bearish due to today's movements, it's essential to wait for a clear break of the yellow support before fully committing to a bearish outlook.