GBPAUD Chart Technical Outlook pressured by Chinese stimulus hopes strong support at 1.8898 set to hold on BOE rethink GBPAUD looking for H & S Pattern on D1 time frame.
The Australian Dollar benefits from the upbeat market mood, buoyed by fresh hopes for stimulus from China. On the other hand, the Pound is fighting back as investors rethink the reaction to the Bank of England decision – perhaps the situation is not that bad, and a recession is not unavoidable, despite higher rates.
I expect GBP/AUD to remain on the back for today and perhaps extend its decline if US data misses estimates. That would push stocks and the Aussie higher.
On the other hand, it could hold above support at 1.8898, and it is unlikely to fall to the following line at 1.8746, defended by the 50 and 200 4h-SMAs. Resistance is at 1.9099, the recent high, and then 1.9182, the late-May peak.
