What’s next on pound?
I’m going to use only technical analysis to analysis few pairs related with Great Britain pound.
GBP/AUD
On the weekly time frame chart, it is possible to see that there is a chart pattern (triple bottom) which can indicate that GBP/AUD might have a further bullish movement soon.
If we look closer, to the daily time frame chart, the price is now recovering from its last bullish movement and we can see a more bearish movement on this pair.
However, it is interesting to see how the price reacts close to the support level (in the grey box).
If the price rejects that level then we can expect a bullish movement.
GBP/USD
GBP/USD has been following an upside trend and as soon as it breaks the consolidation zone (grey box).
At this moment, the price is inside a downside channel (as we can see on daily time frame).
The best option is this scenario, is to see how the price reacts on top or on bottom of that channel in order to make a decision whether we go long or short.
If we move closer, to the 4-hour time frame chart, we can see a possible entry point (the top of the channel).
Therefore, if the price shows signs of possible rejection at the top of the channel then we can think about entries short in this pair.
Otherwise, if the price breaks above the channel and retests (above as well) then we can consider going long.
