British Pound Technical Analysis: GBP/AUD, GBP/CAD, GBP/NZD Rates Outlook

GBP/AUD RATE TECHNICAL ANALYSIS: DAILY CHART (MARCH 2020 TO JUNE 2021) (CHART 2)

British Pound Technical Analysis: GBP/AUD, GBP/CAD, GBP/NZD Rates Outlook

GBP/AUD rates have carved out a series of ‘higher highs and higher lows’ in January, February, April, and now May. In doing so, the pair finally broke above the 23.6% Fibonacci retracement of the 2020 high/2021 low range at 1.8227 before finding resistance in the around 1.8327, which has proved resistance since November 2020. If the technical structure has been largely supportive, it’s also true that the daily timeframe hints of eroding confidence at the start of the month.

But the crucial fact in the near-term may be the case that while GBP/USD rates have a bearish seasonal tendency for June, AUD/USD rates have enjoyed their best month of the year in June; this conjures a mix that favors GBP/AUD weakness. A deeper retrenchment may develop before GBP/AUD rates ultimately fulfill their longer-term bullish technical potential.

GBP/CAD RATE TECHNICAL ANALYSIS: DAILY CHART (MARCH 2020 TO JUNE 2021) (CHART 3)

British Pound Technical Analysis: GBP/AUD, GBP/CAD, GBP/NZD Rates Outlook

Choppiness is one way to describe GBP/CAD price action over the past month. The pair has been tethered to the 38.2% Fibonacci retracement (1.7121) as well as the ascending trendline from the August 2019 and December 2020 lows for several weeks.

Momentum has been slowly turning more bullish, but without much follow through. GBP/CAD rates are below their daily 5-, 8-, 13- EMAs but above their daily 21-EMA, which is in neither bearish nor bullish sequential order. Daily Slow Stochastics are pulling back from overbought territory, while daily MACD has been rising towards its signal line while in bearish territory. More clarity is needed before a directional bias is ascertained.

GBP/NZD RATE TECHNICAL ANALYSIS: DAILY CHART (FEBRUARY 2020 TO JUNE 2021) (CHART 4)

British Pound Technical Analysis: GBP/AUD, GBP/CAD, GBP/NZD Rates Outlook

GBP/NZD rates are coiling into the vertex of the 10-month symmetrical triangle while playing ping pong the 23.6% (1.9287) and 38.2% (1.9760) Fibonacci retracements of the 2020 high/2021 low range, all the while riding along the ascending trendline from the October 2008 and August 2015 lows.

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