GBP/AUD forecast for December 08, 2020

The weekly time frame chart shows that the pound under Brexit pressure falls as the 31 December deadline approaches. From the top, we see that the GBP/AUD pair had a resistance of 1.85000 and a resistance of moving averages of MA50 and MA100, and is currently at a moving average of MA200. At the bottom, we have a long-standing trend line from 2013 that can serve as our support. If Brexit’s uncertainty continues, we can expect the couple to visit the support on the bottom trend line again.

On the daily time frame, we can use Fibonacci as a tool for potential trading. Following Fibonacci, we see that the GBP/AUD pair has fallen below 50.0%, supporting the pound in previous attempts. We also have a break below both moving averages MA50 and MA100. The bearish scenario’s continuation is now very likely, and we can look for the first support at the Fibonacci level of 61.8%.

The four-hour time frame best shows us how the GBP/AUD pair bounces off the Fibonacci level 50.0, is retests that level. We see that at the level of 38.2%, a break was first made below the moving averages MA50 and MA100 and that it is pushing the pair towards lower new ones.

The bearish scenario is more likely, and our first target may be a Fibonacci level of 61.8% at 1.79000. Fisheries, a level playing field, and governance are key obstacles while halting the Internal Market Act (IMB) appears to have eased bloc pressure.
Nevertheless, British policymakers’ willingness to accept a former neighbor’s sharp departure adds to market concerns. Announcing the absence of conditions for finalizing the agreement, British Prime Minister Johnson will head to Brussels for further talks during the week to get the deal ready.
However, many obstacles doubt a success. British Minister of Health Matt Hancock came out with updates related to COVID-19 and said that up to 70 hospitals would start vaccination today. From today’s news: Retail sales in the UK increased in November despite a national blockade, the British Retail Consortium reported.