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GBPAUD Forecast – November-1-2023

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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 pertaining to the GBPAUD pair.

Decline in Australia’s Commodity Prices

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. The decrease was largely driven by reduced prices for thermal coal and liquified natural gas.

When measured in terms of the Australian dollar, the index fell by 14.6%. However, on a month-to-month basis, there was a 3.3% increase in commodity prices, 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 Complete Guide

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 at 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.

GBPAUD Forecast - November-1-2023

GBPAUD Forecast – 4H Chart

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, it would invalidate the bullish scenario, paving the way towards Support 2 (S2).

  • 1 November 2023
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