- GBP/AUD completes the M-formation pattern to the target.
- There is now too much weekly support to contemplate fading the rally.
As per the prior analysis, GBP/AUD Price Analysis: Monitoring for bullish structure to target 38.2% Fibo, the price has indeed moved to the target area.
GBP/AUD is in the hands of the bears but there are prospects of an upside correction according to the following analysis taken from a daily M-formation and managed from an hourly chart.
The daily chart is showing that the price is resisted at this juncture and could be due for a continuation to the downside.
However, the weekly chart shows that the price is being supported and bound by weekly support and resistance:
Until the area is cleared, there is just as much likelihood that the pair can continue higher from this support area, especially given that the daily M-formation is a bullish pattern.