GBP/AUD Price Analysis: Bulls seek break of hourly resistance

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  • GBP/AUD is on the verge of an upside extension from a longer-term perspective.
  • Bulls are seeking to engage once hourly resistance is broken. 

The following is a topdown analysis that shows the weekly chart’s compelling bullish case transpiring into a daily reverse head and shoulders. 

Weekly chart

At this stage, it looks as though the market will close bullish this week and leave a bullish closing wick that would be expected to be filled up from price action on the lower timer frames during the course of next week. 

This makes for a compelling bullish case on the daily chart as follows:

Daily chart

The bulls are looking for a competition of the reverse head and shoulders and for an extension to test the resistance area ahead. 

Bulls can start to prepare for an optimal entry opportunity on the lower time frames, such as the hourly:

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