GBPAUD Breaks Its 2-Month Range
I had been loving the 2 month range that the GBPAUD had forged out since rallying off the 1.5150 lows at the end of 2010. The range was wide enough to be very technical, very predictable and give plenty of pips.
Last week, however, when the AUDUSD traded below its 100-day simple moving average for the 1st time since July 2010, the GBPAUD staged a break out of the range to the upside. The breakout broke above former highs and previous support levels to a high of 1.6499. However, despite finding resistance at the 1.6500 major half point and large quarter point, the pair still remains bullish as it closed last week above the 1.6250 large quarter point.
After correcting 50% of the breakout rally, the GBPAUD continues to be bullish even after finding resistance at 1.6250 after the correction. Despite hitting lows at 1.6140, the price breakdown still finds support above the former sell zone between 1.6070 - 1.6120 and managed to close today’s trading session above 1.6200.
Read my forecasts for this pair in my full analysis at StockTwits FX.
