Forex Signals

GBPAUD Shows a Bearish Failure


The GBPAUD cross in its 2-hour chart exposes an upward advance after the price developed a new lower low in the Tuesday 23rd trading session. The price found an intraday bottom at 1.79997 from where the price recovered erasing the Tuesday losses climbing until level 1.80910.

The price action suggests the structure as a bearish failure, which is confirmed by the bullish breakout observed in the RSI oscillator. On the other hand, the RSI illustrates a sequence on lower highs while the price developed a lower lows series, which corresponds to a bullish divergence. This divergence leads us to conclude that the downtrend developed by the GBPAUD is in an exhaustion stage, and a bullish reversal is imminent.

The breakout over the recent swing high at 1.8066 makes us foresee further upsides until the zone of 1.8236. The invalidation level of our bullish scenario locates at 1.8015.


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By Eduardo Vargas

Eduardo Vargas is a technical analyst and independent trader based in Buenos Aires, Argentina. He is an Industrial Engineer and holds a Master in Finance degree. In 2008 began to trade Chilean stocks listed on IPSA. From 2013 started to trade CFDs on Forex, Commodities, Indices and ETFs markets. He analyses different markets combining the Elliott Wave analysis with Fibonacci tools. He provides a market mid-long-term vision.

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