EN
COTD: GBPAUD – Pound Finding Bearish Territory
1 October 2020GBPAUD – Hourly
GBPAUD –
We saw GBPAUD attempt a stronger recovery last month, but it appears the Pound may not have the resolve to push higher as we enter into October. In today’s Chart of The Day, we examine the hourly chart using the Ichimoku method.
In the shorter-term, it appears the latest weekly pivot points of 1.80 and 1.77 play a pivotal role (excuse the pun) as support for the pair, although this week’s line has not been able to hold back the more determined sellers. It may also hint to where the price action could be heading in the long run.
Last week price action spent a few days consolidating into a distribution pattern before dropping sharply below 1.77, and judging by the thickness of the Ichimoku cloud above 1.80, the level of resistance is sizeable in those regions.
The lagging span (purple line) is below the cloud on both the hourly and daily charts confirming a bearish tone for GBPAUD on multiple time frames. Unless the pair can break above 1.80 with confidence, we may see GBPAUD drift back towards last week’s pivot of 1.77 once again.
Note: Click on charts to enlarge.
Sources: Encrypt Investment, Meta Trader 5, TradingView, Bloomberg
Disclaimer: Articles are from Encrypt Investment analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by Encrypt Investment. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.
Next Article
Coming Up This Week: US Big Banks on the Radar
The third-quarter earnings season will kickstart with major US banks. In an ultra-low interest rates environment, the financial industry struggled faced by a series of pressures triggered by the ongoing pandemic crisis. Over the months, banks had made significant provisions for credit losses and saw major declines in asset management revenues. I...
Previous Article
September: A Typical Scary Month for Investors
Poor Month for Markets Investors are generally apprehensive of the month of September as on average it is marked as the worst month for the stock ma...