The GBPAUD pair recently achieved a clear breakout above the resistance level at 1.9000, recording gains by reaching 1.9122. It then shifted into sideways trading due to conflicting signals from the main indicators, particularly as the stochastic indicator attempts to exit overbought territory.
We now consider the broken resistance level as new support and emphasize the importance of the price gathering positive momentum. This would facilitate pressure on the 55-day moving average at 1.9145, and a break above it would open the way for further gains toward 1.9190 and 1.9240 respectively.
Expected trading range: between 1.9020 and 1.9145
Today’s forecast: Bullish
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