Possible Scenarios on GBPAUD
Hello,
my call on GBPAUD based on the price behaviour is to wait until we have a clear signal of Long/Short. On the downside, we have a tough trendline, so we should expect an uptrend if price wants to respect it. However we've seen a Double Top forming just above the line, so we have to be ready to react in a breakout of the channel to the downside. At a first glance, it seems to be a Long position, I will wait till I see the price rejecting the double top, though.
my call on GBPAUD based on the price behaviour is to wait until we have a clear signal of Long/Short. On the downside, we have a tough trendline, so we should expect an uptrend if price wants to respect it. However we've seen a Double Top forming just above the line, so we have to be ready to react in a breakout of the channel to the downside. At a first glance, it seems to be a Long position, I will wait till I see the price rejecting the double top, though.
Comment:
Our pair has formed a double top in 1h chart, just above the neckline of the bigger double top. So that's a signal that price might want to follow the yellow scenario.
Comment:
Price will soon test the trend line AND the S/R level, so we might either see a big bounce or a breakout and a bearish continuation.
Comment:
Price followed the yellow scenario just as predicted. I went short after the breakout of the trend line and hit 100 pips. More downtrend is coming probably, stay tuned!