Fundamental Outlook:
UK Economic Data: Recent economic indicators from the UK, such as lower-than-expected growth figures, continue to exert downward pressure on the GBP.
Australian Economic Strength: Stronger Australian fundamentals, including robust employment numbers and rising exports, provide support to the AUD.
Technical Analysis:
Resistance Zone: GBP/AUD is facing strong resistance near 1.9400, as observed on the daily chart. Multiple rejections at this level signal potential bearish momentum.
Moving Averages: Price is trading below the 21-day EMA, which aligns with the downtrend.
RSI: The Relative Strength Index (RSI) is near the overbought zone, suggesting the pair might be due for a correction lower.
Candlestick Patterns: A bearish engulfing pattern on the 4-hour chart adds to the short bias.
Market Structure:
The pair has been forming lower highs and lower lows, indicating a bearish trend continuation.
Key support around 1.9000 is the next potential target if the selling pressure continues.
Key Levels:
Entry Zone: 1.9180–1.9200
Stop Loss: 1.9400 (just above recent swing highs)
Take Profit: 1.9000 (next support zone)