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: Go Markets, Meta Trader 5, TradingView, Bloomberg
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