GBP Opening Range Scalps Hit Limits- AUD Setup Halted Ahead of RBA
GBPUSD- Scalp report updated progress on our sterling scalp. Overnight failure into the 1.6040 threshold saw a pullback into the 1.60-handle. US opening range dictated a bullish intra-day bias and longs triggered targets at 1.6030. Key Daily resistance still stands at 1.6040 while respecting the 1.6060 intra-day high. Flat here into the weekend/month with next week's open likely to be telling in ascertaining a medium-term bias.
AUDUSD- Price action unfolded similarly in the aussie (albeit with less upside momentum than the pound) with the pair reversing just ahead of the 1.04-handle. We noted the lack of conviction on shorts ahead of a close below 1.0415 yesterday with the opening range offering longs which yielded little (+13pips) before we closed them out at the end of European trade. I'll remain on the sidelines here as we head into December trade with the RBA on tap on Monday night. Market participants are factoring in a likely 25bps cut which could offer a catalyst and clarity to the monthly opening range. Aussie scalp levels were highlighted in yesterday's report.
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---Written by Michael Boutros, Currency Strategist with DailyFX
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