Sterling is waning across the board. The outlook versus the Australian Dollar is particularly interesting for long term investors.
Mid-May sellers triggered a new down trend after breaking below myriad support levels. The ensuing bounce of June back to 1.79 is classified as a counter trend move. This rally is petering out just below the cloud resistance as well as 50% retracement (intraday) coinciding around 1.7920. As long as this barrier holds our focus and strategy is to the down side. Dipping below the minor trend line (“trigger”) at 1.7810 should speed up bearish activity.
- Near term trend: neutral
- Long term trend: negative
- Outlook: counter trend move ends, negative
- Strategy: hold-short / short-entry < 1.7810
- Support: 1.7810 / 1.7400 / 1.7150-
- Resistance: 1.7920 / 1.8055
- Outlook cancelled/neutralized above 1.7920
Daily chart British Pound / Australian Dollar