GBP/USD and AUD/USD fight off moves to head lower
Buyers have come in to support GBP/USD and AUD/USD, countering any attempt to drive these two lower.
GBP/USD finds support around 200-day MA
GBP/USD has fallen back from its six-month high, but may well find support around the 200-day simple moving average (SMA).
Trendline support from early November may come into play to help the pair rebound towards the highs from last week around $1.24. This would revive the uptrend and put a move towards the May highs at $1.265 into view.
Additional declines would head towards $1.19 and then the July support zone around $1.185. Given the size of the bounce from the September lows, sellers would need to see a drop back below the 100-day SMA to indicate that the 2022 downtrend has reasserted itself.
AUD/USD holds above 100-day MA
AUD/USD has stabilised after Thursday’s sharp drop, but upward momentum has weakened significantly, putting the bounce from the October lows under pressure.
The price has repeatedly struggled to make headway, being unable to push on above $0.68 for any sustained length of time. It also remains firmly below the 200-day SMA, and until it can clear $0.69 the overall outlook remains bearish.
For now the price remains above the 100-day SMA, providing some hope for the buyers that another bounce can develop to challenge the $0.68 area. A move back below $0.66 continues to bolster the idea that the sellers are in control once again.
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