the price line ready to ascend
GBP/AUD started a bearish rally on 21st of February 2022 and descended up to almost 9.4% in 43 days, when it reached to a support zone; the price line then started a sideway market. The price on GBP/AUD is potential of forming a strong bullish wave.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The price line is at the moment is showing 1.77545 which would be just above a strong support zone. The support zone is indicated as a gray zone below the price line; this zone also equals to level level 0.618 of the previous major ascending wave on monthly timeframe and has already been able to pump the price several times in the past and therefore is considered a strong level. RSI is issuing negative divergence signals and MACD is showing indecision among traders. Bulls can be waiting for the price line to have another retest of the gray zone and then they can enter long positions; the target for the ascending wave could be considered on 1.835 and 1.9 .
Please note that, this analysis would be of value just as long as the price line has not broken below 1.71.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.