Successive ineffective votes in the UK Parliament result in greater volatility in British pound pairs, which on the one hand increases the speculative risk and, at the same time, is tempting to get interested in these pairs.
GBPAUD – I analysed this pair last week in the study “GBPAUD – Will the wedge support withstand the pressure of supply? – 28/03/2019“, drawing attention to the rising wedge formation and attempts to overcome its support. Bottom-breaking proved to be effective and quotations are currently under defeated support, which is now for the price a resistance.
If we look at the chart H4 we can predict the levels between which the fight between supply and demand will take place. Blue is the zone 1.8520-40, the overcoming of which may direct quotations to the north, and if supply reaches an advantage, the demand zone at the level of 1.8230 may be the target of the sellers.