FX:GBPAUD British Pound/Australian Dollar
This pair was brought to my attention because it staged a new high on a 5-day basis. Whatever the reason may be for this move in the cable it is interesting because we can draw two very clear trigger lines that should point us in the right direction. Obviously the price has to break above the red line which is the 23.6% Fibo-Retracement on the upside, and if it happens to be that way it needs to move through the lower trigger line to go south while it breaks some sort of support and simultaneously the trendline. What more evidence would we need to go with the flow. I do agree that there is some sort of creativity in drawing this trendline but it has a lot of touching points that turns it - in my opinion - into a relevant one. Also the channel line seems to fit perfect as a parallel line. So, I go either long or short once one of these trigger lines mentioned above are broken. Conservative players should wait for a daily close above or below one of those lines, and needless to say, that aggressive market participants will take a postion as soon as the alarm for the trigger line starts ringing.