GBPAUD → A break of support activates a "Flag" on D1

25 Okt 2023

GBPAUD breaks the base of the bullish correction, which activates the medium-term pattern "flag" on D1. An impulse is formed and the price updates the local minimum



A weak Pound Sterling (chart on the left) may break its support area and head towards 1.2000, which will trigger a fall in GBPAUD. Based on the overall situation, I can assume that after a local correction to the previously broken channel support, the price may continue its fall to 1.897, then to 1.8800. At the moment, I am interested in the resistance area of 1.9190-1.91800. The price is heading towards this area for a retest. There may be a false breakout or a rebound. Consolidation below this line will be a sell signal.
The moving averages are forming a strong signal, and a retest of MA-50 on D1 is a confirmation of the bearish market sentiment

Support levels: 1.897
Resistance levels: 1.9190, 1.9198

I am waiting for local growth to the mentioned resistance with subsequent fall on the basis of the pattern "Flag".

Regards R. Linda!

25 Okt 2023

Nota

the price enters the panic zone. Trap formation is possible. If a false breakdown is formed, a strong impulse may appear