British Pound Technical Forecast – Talking Points
- GBP/AUD sees supportive technical levels following recent downturn
- GBP/CAD may come under pressure on looming bearish SMA crossover
- GBP/CHF trendline looks to underpin prices to preserve trend higher
GBP/AUD Technical Forecast
The British Pound appears to have found support at a prior area of resistance from a descending trendline set from the October swing high versus the Australian Dollar. So far this month, GBP/AUD is down near 0.50%. If the current pace holds, it will mark the first monthly loss since December. However, the currency pair’s technical posture appears bullish at the current view.
March ended with a bullish crossover between the 20- and 200-day Simple Moving Averages (SMA), with a break higher in price immediately following. The 20-Day SMA now appears to be helping to guide prices higher and may continue to do so. Moreover, prices have ranged within an ascending channel since January.
A bearish MACD cross below the centerline may weigh on short-term action, along with the 23.6% Fibonacci retracement level – which also coincides with the psychologically important 18000 level. That said, the 200-day SMA is on the verge of turning higher, signaling a shift in long-term momentum. Overall, GBP/AUD looks ready to continue drifting higher.
GBP/AUD 8-Hour Chart
Chart created with TradingView
GBP/CAD Technical Forecast
GBP/CAD’s technical posture appears neutral, but an incoming bearish SMA crossover may lead to some downward pressure on the currency pair if the 20-day SMA (yellow line) moves below the 200-day SMA (red line). So far this month, the Pound has made a slight appreciation versus the Canadian Dollar. This follows a sharp move lower in March, one that ended five consecutive monthly gains.