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The British pound traded lower against a basket of currencies, including the Australian dollar. The GBPAUD pair after trading towards the 1.8651 moved lower and currently testing an important support area. We need to see whether it can manage to hold it in the short term or not. There are a couple of important risk events lined up in the UK shortly, which might decide the fate of the GBPUSD and GBPAUD pair in the near term. The most important event coming up is the speech from the BOE Governor Mark Carney, which might cause heavy moves in the British pound.
There is a critical bullish trend line formed on the hourly chart of the GBPAUD pair, which might act as a catalyst for the pair moving ahead. Either it can produce a bounce or might give way for more losses in the near term. There is an important support as well around the mentioned trend line as the 50% fib retracement level of the last leg from the 1.8263 low to 1.8651 high. Moreover, the 100 hourly moving average is also sitting around the highlighted support area. So, one might say that there is a monster hurdle for sellers around the 1.8400 area and if the pair moves lower, then it might struggle to break it.
If the GBPAUD pair bounces from the mentioned support area, then there is a possibility of a run back towards the 1.8550. Any further gains might call for a test of the last high.
Overall, one might consider buying around the 1.8400 support area if trend line holds.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com
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