The GBP/AUD currency pair has risen after it touched the uptrend line on January 16 around 1.6060. Now the pair is trading around 1.6633 after it recorded the highest level at 1.6766; this means the pair has risen for more than 600 pips within ten working days.
On Thursday the preliminary GDP from the UK beat the estimate, posting a strong gain of 0.6% in the fourth quarter of 2016.
The pair is trading inside the wedge which was formed last September as we can see on the chart below. The pair is trading between 50% and 38% Fibo, where the 50% is considered as a key resistance area for the pair; the same price is the average price for last 50 days as we can see in the SMA indicator.
The RSI Indicator started giving us the sell signal but we are waiting for a bearish price action candle and the MACD sell sign too.
The Next Few Days
So, what are our options? From this analysis we can sell the pair when we see the bearish candle around the resistance area 1.6750 or after breaking last Friday's low price and keep our target at 1.6380. If the pair breaks the downtrend line we have to enter the market with a second scenario and buy the pair till 1.7190.
We have to watch out for upcoming hot news like the Official Bank Rate, Carney's speech and the inflation report next week from the UK.
