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GBP/AUD Breaks Above Resistance Line

Since making the 2014-high at 1.9180 in January, GBP/AUD has slid to 1.7718. However, it is now showing early signs of bullish continuation.


(gbpaud daily chart, 5/20)

The daily chart shows
1) A prevailing bullish trend, which goes back to March 2013.
2) Price remains above the 200-day simple moving average despite briefly breaking below it a few times.
3) The RSI is around 60. If it holds below 60, the bearish momentum remains. A break above 60 especially if it goes above 70 would reflect momentum shifting to bullish.

Today, price is breaking above a projected falling resistance, but it would be premature to call it any meaningful bullish breakout just yet.

Breakout, Bullish Target:
A break above 1.8295, let's say 1.83, would put price above all the moving averages (200, 100, 50), and would likely signal a bullish continuation. This scenario opens up 1.8820 resistance pivot and 1.9180, 2014-high.

Buy on dip after breakout:
In this scenario, consider waiting for a throwback toward 1.8030-50 area for a buying on a up trade idea.