GBP/AUD: Multi month lows have been printed between the 24th & 25th August, also forming a new daily low from the previous bearish structure we had been following for some time now. The rules of P.A suggest that once a prominent new low or high has formed in line with the overall structure of the trend, then we can expect the market to pull back from that level to retrace - ready for a new leg or reversal.
From a weekly standpoint (The closure of Friday the 18th Aug) the 1.6250 monthly SUPP level had held firm which now suggests a pullback is imminent. Studies on the H4 suggest the most recent Moving average crossover and break of the box range will lead us up to and maybe beyond 1.6500 now as there is a strong possibility a low has been carved out. We suggest long on pullbacks.
Previous article: As mentioned in our Today's Technicals section, the 1.6250 support barrier has held firm, with four wick rejections on the 8H time frame. The importance of correct key level placement and structure is everything when it comes to building foundations that you can trust and have confidence in. Yesterday, I mentioned that 1.6350- 1.6400 is a probable price point for a retracement.?
From a weekly standpoint (The closure of Friday the 18th Aug) the 1.6250 monthly SUPP level had held firm which now suggests a pullback is imminent. Studies on the H4 suggest the most recent Moving average crossover and break of the box range will lead us up to and maybe beyond 1.6500 now as there is a strong possibility a low has been carved out. We suggest long on pullbacks.
Previous article: As mentioned in our Today's Technicals section, the 1.6250 support barrier has held firm, with four wick rejections on the 8H time frame. The importance of correct key level placement and structure is everything when it comes to building foundations that you can trust and have confidence in. Yesterday, I mentioned that 1.6350- 1.6400 is a probable price point for a retracement.?