The GBP/USD pair’s rally is still in progress edging higher towards the 1.3367 level. Intraday bias remains on the upside direction at this point. A firm break of the 1.3367 resistance level will confirm resumption of whole rebound from the 1.3323 bottom. In such case, the AUD/USD pair would target projection at the 1.3438 level next. On the downside, the pair trading below the 1.3367 minor supports will turn intraday bias neutral first. But near term outlook will stay cautiously bullish as long as support holds.
In the bigger picture, the current development suggests that rebound from the 1.3323 level is developing into a medium term rise. There is no confirmation of trend reversal yet and we will continue to treat such rebound as a corrective pattern. But in any case, a further rise is expected even further to the 1.3367 level. The pair breaking at the resistance level is needed to confirm completion of the rebound. Otherwise, a further rise is now in favor.
The recent run low on the sterling has been stopped and showed some consolidation. A huge accelerating bull run has seen the market burst through the key high at the 1.3392 level. This looks to be a huge breakout above the high of these levels.
The market has been limited by the resistance band by these levels on numerous occasions in the past few candles but the weakness of the dollar has driven a breakout. Chasing the sterling higher would be a move filled with a significant reward. The pair’s oscillator trading at the 50 level is higher than it has been in recent times. The pair’s momentum is clearly incredibly stronger and staying with the bull run may be profitable in the very near term. However, if profit taking hits, it could turn to be a sharp reversal. We keep watching for the exhaustion signals.
The entirety of current session took place on the pivot bands. The bulls were looking to consolidate further more before the sharp gains of today, but again the move looks to capitalize and a close back inside the resistance would now be a corrective signal. The pair’s oscillator was close to crossing back above the 50 level before today’s gains. A move back below the 50 level on the daily would be corrective signals and closing level back inside the band would be a profit taking signal. The four hourly charts supports around the breakout at the 1.3394 level.
The AUD/USD pair opens today’s trading with a clear positivity to move away from the bullish trend line that appears on four hour chart. As the EMA50 shall be the first key level for support to protect the price from suffering more losses. While the pair’s stochastic begins to provide a positive overlapping signal on the four hourly time frames.
Therefore, these factors encourage us to continue suggesting the bullish trend on the intraday and short term basis. The pair’s main targets begin at the 1.3438 and extend to reach 1.3482 levels. Taking into consideration, the pair breaking at the 1.3394 level will begin the expected rise and push the price to start bullish correction on the intraday basis.
The pair’s expected trading range for today is between the 1.3367 supports and 1.3482 resistances levels.
Expected trend for today: Bullish
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