A five-month resistance level pauses GBP/AUD upside

The GBP/AUD buyers are battling the five-month resistance of 1.8977. After a period of price consolidation in a triangle pattern, buyers managed to break the pattern upwards. Posting a successful pullback has sent the price to the resistance of 1.8977, which roughly lines up with the peaks of July and September 2021. While being above 1.89 still keeps buyers hopeful of maintaining control, this is the third unsuccessful attempt to cross this barrier in the last two weeks.

The uptrend will continue only on the condition that they clear this critical obstacle. In that case, the following resistances would initiate at the 1.9032 and 1.9060 hurdles. Crossing these barriers can encourage more buyers to push for the 20-month record high in the boundary between 1.9100 and 1.9150.

The emerging shooting star candlestick indicates the persistent resistance of sellers at this level which can be a sign of buyers' fatigue during the upside move. In the event that Monday ends with such a long shadow, the next trading day will be very consequential.

If GBP/AUD pair falls below the lowest price of this candlestick, sellers will target immediate support at 1.89. Intensifying selling sentiment will put the 1.8780 price floor in the spotlight.

Overstepping this barrier in the vicinity of the 50-day exponential moving average can be a significant downward signal for further fall towards the 200-day EMA.

Short-term momentum oscillators convey a bullish bias. The RSI fluctuates in the buying area, and the momentum moves above the 100-threshold, pointing north. The MACD bar also rises in the positive zone, above the signal line.

Four-hour chart analysis

The four-hour chart shows more clear signs of buyers backtracking from the 1.8977 resistance level.

Given the recent long red bodies, there seems to be nothing in the way of sellers that would stop them from lowering the price to 1.8900.

The short-term oscillators in this time frame also hint at the weakening of buying forces. The fall of the RSI towards the neutral zone indicates waning bullish strength. The momentum is also landing around the 100-level, and the MACD bar is shortening in the positive area, though it is still above the signal line.

In conclusion, buyers do not have enough strength to overcome this resistance ahead. And until they recover, the market seems to be moving towards the expected support levels.