Home Trading Forex Watchlist: GBP/AUD’s Downtrend Pullback

Forex Watchlist: GBP/AUD’s Downtrend Pullback

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A new U.K. PM has pushed GBP/AUD from its monthly lows!

Can GBP maintain its bullish momentum?

I’m looking at GBP/AUD’s 4-hour chart to see if its downtrend remains intact.

GBP/AUD 4-hour Forex Chart

GBP/AUD 4-hour Forex Chart

In case you missed it, former Foreign Secretary Liz Truss will replace Boris Johnson as the U.K.’s Prime Minister.

Truss will be formally appointed by the Queen today but already the incoming PM is making headlines with her priority bills.

See, Truss is preparing an emergency support deal that promises to help U.K. consumers weather the country’s rising prices and energy crisis.

The optimism has boosted GBP/AUD from its 1.6900 lows and now the pair is testing the big 1.7000 psychological handle.

Can GBP maintain its bullish momentum against AUD?

Take note that RBA has raised its interest rates by 50 basis point earlier today.

Meanwhile, news of monetary and fiscal support in China has helped AUD climb against its counterparts.

Extended GBP optimism could push GBP/AUD to the 1.7100 psychological handle near the 100 SMA and a mid-channel resistance on the chart.

The 200 SMA near the top of the channel is also on the table if we see enough support for GBP over the next couple of days!

Keep an eye out for AUD strength or GBP weakness, which could bump GBP/AUD from its potential resistance zones.

A rejection at GBP/AUD’s top or mid-channel levels could drag the pair to its 1.6870 lows or even new September lows.

Watch this one closely, errbody!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.

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