GBP/AUD 4H chart 8/20/2012 9:15AM EDT
The 4H GBP/AUD chart shows a market trading in a rising channel since finding support at 1.4710. Clearing the 1.4962 pivot was key in showing bullish strength, as well as the RSI in the 4H chart pushing not only above 60 but above 70. A break below the channel breaks the current bullish attempt, but if the market remains above 1.49, the bullish scenario is still developing. Also, after tagging 70, if the 4H RSI remains above 40 and pushes above 60, we should be seeing bullish continuation.
If the bullish scenario does extend at least for the short-term, let’s take a look at the daily chart for some targets, and resistance levels to monitor. As the market channels away from a declining channel, the first key level is the 1.5270/80 area. Here we have the 200-day simple moving average, a previous resistance pivot, and 38.2% retracement. Also, the daily RSI is probably going to test the 60 level. A bearish market should hold the RSI at 60, so we should consider possible end to our current corrective bull cycle.
GBP/AUD Daily chart 8/20/2012 9:20AM EDT
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.