24 Sep 2013
GBP/AUD glued to 1.7030 after retracement from 1.7065 highs; 23.6% Fibo
FXstreet.com (Chicago) - GBP/AUD was capped at 1.7065 and retraced 23.6% (from September 19th lows to peaks), accumulating 0.16% gains.
Price action reveals a downward primary trend matched by the secondary trend. After breaking upward trendline (from last April 8th reversal), the pair extends a sideways movement with strong 1.7090 limits impeding breakthroughs at least 6 times within the past 2 weeks. Offered at 1.7032, the pair navigates between supports aligned at 1.7034 (September 12th lows), 1.6980 (September 17th lows) followed by 1.6912 (September 11th lows) and the resistances set at 1.7086 (September 20th highs), 1.7142 (September 12th highs) ahead of 1.7195 (August 26th lows).
According to Tim Riddell Head of Global Markets Research, Asia on last Friday’s analysis, applying to today’s price action "the retracement profile off the 1.7375-1.7500 area (long term retracement) continues with rising potential for a 23.6% retracement (of the rally from 1.4380) to 1.6750 in the near term within potential of a standard 38.2% pullback to 1.6300. A repeat of the recent rebound to 1.7180 cannot be ruled out, but near-term bias is for an early test of 1.6750 before another short-term bounce develops. In the longer term, this should still be seen as a corrective pullback."
Price action reveals a downward primary trend matched by the secondary trend. After breaking upward trendline (from last April 8th reversal), the pair extends a sideways movement with strong 1.7090 limits impeding breakthroughs at least 6 times within the past 2 weeks. Offered at 1.7032, the pair navigates between supports aligned at 1.7034 (September 12th lows), 1.6980 (September 17th lows) followed by 1.6912 (September 11th lows) and the resistances set at 1.7086 (September 20th highs), 1.7142 (September 12th highs) ahead of 1.7195 (August 26th lows).
According to Tim Riddell Head of Global Markets Research, Asia on last Friday’s analysis, applying to today’s price action "the retracement profile off the 1.7375-1.7500 area (long term retracement) continues with rising potential for a 23.6% retracement (of the rally from 1.4380) to 1.6750 in the near term within potential of a standard 38.2% pullback to 1.6300. A repeat of the recent rebound to 1.7180 cannot be ruled out, but near-term bias is for an early test of 1.6750 before another short-term bounce develops. In the longer term, this should still be seen as a corrective pullback."