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GBP/AUD stalled at 1.7950 resistance after a gap higher


FXStreet (Moscow) - GBP/AUD started the new trading week with a gap higher at 1.7944 after finishing the previous week at 1.7909, but the upside dynamic has stalled at the resistance of 1.7950 so far

GBP/AUD liked what Carney said

GBP/AUD had a difficult week. While the net weekly loss is impressive - about 150 pips - the cross finished Friday below an important local support of 1.7950, which darkened its near term perspective and opened up the way towards the next pivot of 1.7800/1.7790. Whether the bears manage to have it their way, or let the chance slip through the fingers depend on today’s development. Carny impressed the markets during weekend by saying that he would not necessarily wait for real wages to turn positive before initiating the tightening cycle in UK. This gave the pound a good boost early in Asia and helped the cross to open with bullish gap. As the European calendar is empty today, we might see a lot of technical trading and speculations about Carney’s comments that may give the pair additional boost. Should it break well above 1.7950, we might see a return to 1.8000 and then to 1.8080 (previous week’s opening). While the failure here could push the cross towards 1.7900 to close the gap.

What price levels and patterns have to be considered?

Spot is presently trading at 1.7953, and next resistance can be seen at 1.7965 (Daily Open), 1.7966 (Daily High), 1.7978 (Weekly Classic PP), 1.7982 (Daily Classic R2) and 1.7996 (Hourly 100 SMA).

Support below can be found at 1.7948 (Yesterday's High), 1.7945 (Daily Classic R1), 1.7933 (Daily Low), 1.7929 (Hourly 20 EMA) and 1.7911 (Daily Classic PP).

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