GBP/AUD H4 Timeframe: TheGBP/AUD price movement on the H4 timeframe has shown quite interesting dynamics in recent days, especially after a prolonged consolidation phase in the lower area. Note that the price was under significant pressure in early November, forming a low around 2.0061 and minor support at 2.0085. This area appears to be acting as a strong rebound zone, where buyers began to respond positively by pushing the price upward. The chart shows the use of the 100-day moving average (MA) and the 200-day moving average (MA) This indicates that the zone around 2.0275 – 2.0310 is a dynamic resistance area, reinforced by the horizontal structure at 2.0389, which appears to be a key resistance area in the short term. As long as the price fails to break out strongly above this level, the bullish bias cannot be fully confirmed.
On the other hand, there is a small higher low structure that has formed since the bounce from 2.0061. This indicates that selling pressure is starting to weaken, while buyers are slowly trying to regain control. However, this pattern needs further validation in the form of a solid breakout. If the price manages to break through and hold above 2.0389, the potential for an increase towards the next resistance at 2.0508 or even 2.0687 is quite wide open. Conversely, if the market weakens again from its current position, the 100-day moving average (MA) area could serve as initial dynamic support, before the price retests the horizontal support at 2.0160 – 2.0085. A breakdown below 2.0061 could potentially trigger a further decline towards the psychological area of 1.9953. Overall, GBP/AUD is currently at a point of equilibrium where buyers and sellers are equally strong. The next direction depends largely on the price's ability to break through one of the key levels: resistance at 2.0389 or support at 2.0160. Traders should wait for clear candlestick confirmation before making a decision.
