On Thursday, 14 April, after breaking the April price ceiling, the GBP/AUD pair has challenged resistance at 1.76292, which could lead to a short consolidation period. However, overcoming this hurdle will open the way to higher price levels.
The four-hour chart shows that the pair has been trading in a downtrend since late February until buyers crossed above the descending trendline last week. A bullish movement against the Australian dollar is underway, especially since buyers broke the April price ceiling at 1.75795 in the Wednesday trading session, which aligns with the 50-exponential moving average. However, as long as the price stays below the 200 moving average, it is a corrective wave.
The GBP/AUD is currently facing resistance at 1.76292, which could cause a short period of price consolidation. Even so, it is imperative to keep in mind that breaking this barrier paves the way for higher resistance at 1.76916, which could be the next target area for buyers. As a result of the bullish sentiment prevailing in the market, we might see the price getting ready to face the 200-EMA, which is around the resistance level of 1.77623. Whenever such a wall is violated decisively, that is considered a sign of the emergence of a new uptrend.
Alternatively, if sellers regain control of the market, the price may fall back to the 50 EMA. A sustained move below this dynamic support could push GBP/AUD to its previous bottom of 1.73972. Should the outlook continue to deteriorate, the 5-year price floor at 1.71749 will serve as the following support.
The momentum oscillators indicate that buyers control the market. Still, they also hint that short-term exhaustion of buying forces may be imminent. The RSI is approaching the 70-threshold area, close to overbought territory. However, the momentum is rising in the bullish realm. The MACD histogram is relatively far above the zero line near its peak.
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