Daily Price Action

GBPAUD Range Persists Ahead of Key Event Risk


GBPAUD continues to carve out what is now a two and a half month wedge pattern ahead of key events for both currencies. Will these events be the catalyst we need to finally see a break? Only time will tell but this pattern looks ready to pop any day now.

During yesterday’s session it looked as though the bulls would break free from wedge resistance. However the bears managed to gather enough selling pressure to keep the pair capped below resistance for one more day.

The next 24 hours offers up four readings that could finally give us the break we’ve been waiting for. First up is China’s Manufacturing PMI at 9pm EST followed closely by Australia’s PPI at 9:30pm. Then on May 1st the UK presents their manufacturing PMI at 4:30am EST followed by the US PMI at 10am to close out the week.

While it’s uncertain whether or not these events will trigger a break, what is certain is that the pair is running out of room within this pattern. So be sure to keep a close eye on this one over the coming sessions as any break of support or resistance could trigger a much larger move over the coming weeks.

Summary: Wait for a break of support or resistance on a 4 hour basis and then watch for a retest of the broken level. A break higher would first target the 1.9650 area while a break below support would first target the 1.8958 area.

GBPAUD wedge on the 4 hour time frame

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