GBP/AUD 4-Hour Timeframe AnalysisGBP/AUD 4-Hour Timeframe Analysis
GBP/AUD has shown signs of losing momentum from its previous bullish trend, with price action consolidating within a range. We have identified key levels to watch, including a major key resistance at 2.06200 and a major key support at 2.03000. Additionally, a minor key support level at 2.05400 serves as a short-term pivot point for potential price movements.
If price breaks above the major resistance at 2.06200, we anticipate a continuation of the bullish trend toward the next minor key resistance at 2.09400. However, if price retraces and breaks below 2.05400, sellers could push the pair lower toward the major key support at 2.03000.
Outlook and Key Technical Levels
🔹 Major Key Resistance: 2.06200 (Breakout level for bullish continuation)
🔹 Minor Key Support: 2.05400 (Break below signals bearish move)
🔹 Major Key Support: 2.03000 (Downside target for sellers)
Fundamental Insight and Market Sentiment
📉 GBP Weakness: he British Pound faces mounting pressure due to weakening fundamentals. UK inflation dropped to 2.8%, fueling speculation of a Bank of England (BoE) rate cut in May. With inflation cooling, the urgency for tighter monetary policy diminishes, making GBP less appealing to investors. Adding to this downside risk, UK Chancellor Rachel Reeves’ Spring Statement introduced public spending cuts, further dampening growth prospects for 2025 and increasing concerns about the UK’s economic trajectory.
📈 AUD Resilience: The Australian dollar initially faced losses due to a lower-than-expected CPI print, raising expectations for an RBA rate cut. However, optimism surrounding Australia's recent budget and positive risk sentiment helped the AUD recover.
Given the technical breakdown and fundamental backdrop, we are monitoring GBP/AUD closely for potential trade opportunities, with a focus on price action near key support and resistance levels.
📌 Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial professional before making any investment decisions.
