FxNews – In today’s comprehensive GBPAUD forecast, we will first scrutinize the current economic conditions in Australia. Following that, we will meticulously delve into the details of the technical analysis of the GBPAUD pair.
Australian Commodity Price Drop
Bloomberg–In October 2023, the Reserve Bank of Australia reported a 16.8% year-on-year contraction in its Commodity Price Index. This followed a revised drop of 21.3% in the preceding month. Reduced prices for thermal coal and liquified natural gas largely drove the decrease.
When measured in terms of the Australian dollar, the index fell by 14.6%. However, on a month-to-month basis, commodity prices increased by 3.3%, an improvement from the revised 4.3% rise in the previous month. Notably, the sub-indices for rural areas showed an upward trend.
GBPAUD Forecast: A Technical Analysis
The GBPAUD pair has been unable to maintain its position above the weekly pivot point of 1.917 on the 4-hour chart, resulting in a decline to a significant support level of 1.9. Furthermore, the GBPAUD has exhibited a bullish, long-wick candlestick pattern on the daily chart, and the Relative Strength Index (RSI) indicates divergence. These signs could suggest a potential trend reversal or an impending price correction.
Support 1 (S1) serves as the foundation for the bullish scenario. As long as the price remains above 1.899, it’s plausible that the GBPAUD price could ascend and retest the weekly pivot.
Conversely, if the bears manage to close below S1, the bullish scenario would be invalidated, paving the way towards Support 2 (S2).