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GBPAUD Forecast – November-7-2023

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In today’s comprehensive GBPAUD forecast, we will first scrutinize the current economic conditions in the United Kingdom. Following that, we will meticulously delve into the details of the technical analysis pertaining to the GBPAUD pair.

UK Housing Market in a Downward Trend

In October 2023, the UK housing market experienced a downturn, with the Halifax House Price Index reporting a 3.2% decrease compared to the previous year. This follows a revised drop of 4.5% in September. The forecast suggests that this downward trend is likely to continue in the coming months due to a combination of weak demand and high borrowing costs.

The decline in house prices was observed across all regions and nations in the UK. Southeast England was hit the hardest, witnessing a substantial 6.0% drop in prices over the past year. London’s real estate market was not spared either, with property prices falling by 4.6%.

Despite the overall downward trend, there was a slight uptick in October, with house prices rising by 1.1% on a monthly basis. This breaks a six-month streak of consecutive decreases and is largely due to a limited number of homes available for sale.

GBPAUD Forecast: A Technical Analysis

The GBPAUD currency pair is currently experiencing a bounce from the S1 support level (1.895), testing the upper line of the bullish channel. With the RSI indicator flipping above the 50 line, the market is showing bullish tendencies. However, the question remains: Will the GBPAUD bulls be able to break out of the bearish channel?

GBPAUD Forecast - November-7-2023

GBPAUD Forecast – Daily Chart

To gain a more detailed perspective, let’s delve into the 4-hour chart of the GBPAUD currency pair. The situation on the 4H chart mirrors the daily chart, with one notable exception. The RSI indicator signals divergence, indicating a potential market correction or trend reversal. As the price continues to hold below the R1 resistance level (1.919), it’s likely that the downtrend will continue, targeting the 1.905 pivot, followed by the 1.889 (S1) level.

GBPAUD Forecast

GBPAUD Forecast – 4H Chart

Conversely, if the bulls break out of the bearish channel to secure a close above R1 and maintain stability, they will pave the GBPAUD bulls’ path to 1.935. This scenario would represent a significant shift in the GBPAUD market dynamics.

Stay tuned for more updates on the GBPAUD forecast and potential market trends. Remember, investing in currency pairs involves risk, and it is important to make informed decisions based on thorough research and analysis. Always consult with a financial advisor before making any investment decisions.

  • 7 November 2023
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