British Pound, Australian Dollar, New Zealand Dollar, Canadian Dollar – TALKING POINTS
- GBP/AUD broke below two support channels – selling pressure could lead to retest of 3-year uptrend
- GBP/NZD at risk of testing a multi-month slope of appreciation if selling pressure continues to persist
- GBP/CAD broke steep support and is now being guided lower by deep, descending resistance channel
GBP/AUD has broken below two slopes of appreciation – labelled as “Uptrend A” and “Uptrend B” – and has closed lower for seven consecutive days. Selling pressure may abate at a key support range between 1.8653 and 1.8547, though if GBP/AUD punctures that zone too, the implications could be dire. Breaking that area would open the door to retesting the September 2017 uptrend. Shattering that could mark a tectonic shift in the pair’s multi-year trajectory.
GBP/AUD – Daily Chart
GBP/AUD chart created using TradingView
GBP/NZD recently broken below the March uptrend and appears to be stuck in a wide-ranging congestive zone between 2.0445 and 2.0961. However within that range, the July 2019 uptrend cuts right through it, putting GBP/NZD in a tough spot. Clearing the multi-month slope of appreciation with follow-through could be met with heightened liquidation pressure and may lead to a bearish correction of notable magnitude.
GBP/NZD – Daily Chart
GBP/NZD chart created using TradingView
GBP/CAD also just broke a steep, upward-sloping support line and is being guided lower by descending resistance dating back to the two-year swing-high at 1.8053. If the slope of depreciation holds, GBP/CAD may eventually retest a three-tiered support area between 1.6957, 1.6877 and 1.6730. If these floors crack under the weight of aggravated selling pressure, their invalidation could give way to a significant selloff.
GBP/CAD – Daily Chart
GBP/CAD chart created using TradingView
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— Written by Dimitri Zabelin, Currency Analyst for DailyFX.com
To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter