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GBPAUD remains on a bullish footing in the long term as prices trade within an ascending channel. The momentum began towards the end of July.

A breakout above the upper channel at the beginning of August faced resistance, leading prices towards the median regression.

From then we have seen consolidation between 1.8139/1.8411 range. A break on the upside is apparent as we currently see support at the 38.2% Fibonacci retracement.

Should the momentum indicator contract towards zero, then this would validate the bullish divergence.

A move out of the cloud and past the Tekkan/Kijun confluence area could see another attempt above 1.8411. At that level, we have seen two previous attempts at a break past the said price.

In the shorter intraday basis, prices are trading in the longer-term ascending channel. The bullish bias is also supported by the momentum indicator. We now look at the current support 1.8151 and a shift towards the 61.8% Fibonacci retracement.

A bounce towards the cloud could...


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