GBPAUD Looks for Q3 Highs!

GBPAUD remains on a bullish footing in the long term as prices trade within an ascending channel. The momentum began towards the end of July.

A breakout above the upper channel at the beginning of August faced resistance, leading prices towards the median regression.

From then we have seen consolidation between 1.8139/1.8411 range. A break on the upside is apparent as we currently see support at the 38.2% Fibonacci retracement.

Should the momentum indicator contract towards zero, then this would validate the bullish divergence.

A move out of the cloud and past the Tekkan/Kijun confluence area could see another attempt above 1.8411. At that level, we have seen two previous attempts at a break past the said price.

In the shorter intraday basis, prices are trading in the longer-term ascending channel. The bullish bias is also supported by the momentum indicator. We now look at the current support 1.8151 and a shift towards the 61.8% Fibonacci retracement.

A bounce towards the cloud could bring the 38.2% and median regression confluence line into play. The upper regression will be an area of note should there be no further resistance at the Tenkan and Kijun lines. With the first test being the recent high at 1.8415.