2026-02-16 05:29:00
Trend traders huddle up!
GBP/AUD is turning lower from a key trend resistance zone that could draw in more selling pressure over the next few sessions.
Is the pair ready to extend a months-long downtrend?
Threats to U.K. Prime Minister Keir Starmer’s leadership kept the British pound on the defensive against fellow risk currencies like the Australian dollar last week.
The Aussie, meanwhile, was one of the strongest performers. Rising gold prices, hawkish remarks from RBA members, and optimism around a possible extension of the U.S.-China trade truce all gave it a solid lift.
Will these themes continue to pressure GBP/AUD in the days ahead?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the Australian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/AUD just turned lower from the 1.9300 psychological handle, which sits near the middle of a descending channel on the 4-hour time frame.
What makes the setup more interesting is that the area also lines up with the 38.2% Fibonacci retracement of February’s downswing and is close to this week’s Pivot Point line.
A few more bearish candlesticks would confirm rejection at 1.9300 and could drag GBP/AUD back toward the 1.9100 previous lows, if not fresh monthly lows.
On the flip side, bullish candlesticks and sustained trading above 1.9300 could push the pair above the mid channel line and open the door to the 1.9400 zone or even the 1.9500 previous inflection point.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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