GBPAUD → Flag on D1 after support breakout

20 Okt 2023

GBPAUD has been forming consolidation for several weeks, which was formed after the local bottom retest. Within the descending channel an interesting setup is forming, which is worth paying attention to



I suggest to pay attention to the level of 1.9198 and the trend resistance. These are two lines, which play a key role at the moment. Breakout of one of them and price consolidation above or below the level will form an impulse. The readiness for a possible increase in liquidity and potential is indicated by the strong narrowing of the moving averages. On the background of the weakening GBP, which is testing the support for a breakout, the GBPAUD currency pair may also continue its decline, but for this we will have to wait for the price consolidation below 1.9198.
In any case, the signal to enter selling or buying will be a break of the line and consolidation above or below. On d1 it is possible that a correction is forming before a further fall, as the trend support was broken earlier and now a correction is forming.

Support levels: 1.9198
Resistance levels: descending trend line, 1.9286.

In the long term I expect the price to continue following the trend, but on the background of liquidity surge the market may break the trend resistance

Regards R. Linda!

20 Okt 2023

Nota

The currency pair starts realization of the scenario when it forms a breakthrough of resistance. It is possible to retest one of these levels before further decline

22 Okt 2023

Nota

The market is breaking local resistance. Two scenarios are possible from the opening of the sessions:
1) False breakout and if the price returns to the boundaries of the descending decline, the price will weaken
2) Fixation after the breakout and continuation of the flag formation.