8 May 2014
GBP/AUD: Immediate risks to the downside - Westpac
FXStreet (Bali) - - David Coloretti, FX Technical Analyst at Westpac, thinks that GBP/AUD risks near term are to the downside, for a potential retest of 1.78.
Key Quotes
"We remain conscious of the positive MT momentum shift that has driven a material retracement in recent weeks. Note that MT momentum remains positively biased."
"Last week’s high was likely the completion of the retracement as the rally topped out at 2 coincident Fibonacci retracement levels at 1.8290."
"The subsequent decline has produced a ST momentum downswing, hence the immediate risk is a retest of the April lows below 1.7800 in the coming weeks."
"Beyond this we see GBP/AUD struggling to hold lower levels however, given its prominent positive MT momentum bias."
Key Quotes
"We remain conscious of the positive MT momentum shift that has driven a material retracement in recent weeks. Note that MT momentum remains positively biased."
"Last week’s high was likely the completion of the retracement as the rally topped out at 2 coincident Fibonacci retracement levels at 1.8290."
"The subsequent decline has produced a ST momentum downswing, hence the immediate risk is a retest of the April lows below 1.7800 in the coming weeks."
"Beyond this we see GBP/AUD struggling to hold lower levels however, given its prominent positive MT momentum bias."