forexTrdr

Short GBPAUD after third test of 2018 high- pull back to 76.4%

Short
FX:GBPAUD   British Pound / Australian Dollar
Frustratingly in the time its taken to go to publish headlines have come out on Labour MPs not backing Mays deal and little expectation from UK on any breakthrough at todays meeting. Those headlines led to a drop of 40pips - but the market is what it is.. sometimes you nail the timing.. other times it beats you to it

Pair retested 2018- now been tried on 3 occasions and failed to break higher- looking for a pull back to 76.4% fibonacci line at 1.8380 area before a longer sustained move higher on positive brexit outcome.

GBPAUD at overbought levels on daily RSI where previous occasions have seen a pull back of around 300pips in a downtrend before resuming move higher

The risk with this trade is for a downside surprise to AUD gdp overnight- last miss in December led to a 4% drop in AUD but given the pull back from the highs i believe we now have enough room for the trade to breath


Trade active: Risk confirmed with low AUD gdp taking AUD to 4 month lows across the board- but as per comment its stayed with the range we have given so expect the pair now to switch focus back to GBP and lack of progress with Mays deal
Trade closed: target reached: another one.