Greetings traders,
Today I present and opportunity to go long on GBPAUD. This pair has been in a strong uptrend since May 2015 as many GBP pairs after the Conservatives win in the UK General elections. I believe there will be further continuation in this bullish trend.
Technically Speaking:
Recent price action in the past two weeks has shown the pair very limited to the downside. Resistance at 2.1460-2.1500 has been tested multiple times with plenty of conviction from bulls and the rejection has been very uneventful. This has led to the formation of an ascending triangle. I believe with recent PA that there is enough bullish momentum for a break on the upside. RSI and MACD shows room to the upside. The fib levels from the swing hi-lo of Dec 2014-Jan 2015 show that the recent attempt of bears to break the bullish trendline very unsuccessful as the pair strongly bounced from the 1.618 fib level and is ready to go to the 2.618 fib. Overall, the bullish trend will remain intact.
Fundamentally Speaking:
The BoE is deadset on raising rates in the former part of 2016 due to an uptick in inflation and various other Macroeconomic Indicators. Mark Carney (BoE Governor) warned in July for households to prepare for a "rate rise". The divergence in monetary policy between Boe and the RBA is large. RBA are very dovish however are reducing their use of expansionary monetary policy but with Yuan being devalued and other economic headwinds to Australia means that AUD will suffer in the latter part of 2015. Commodity prices as well as uncertainty in China means that investors are losing confidence in AUD.
Thank you for reading and trade safely,
Yours,
GekkoWS
Today I present and opportunity to go long on GBPAUD. This pair has been in a strong uptrend since May 2015 as many GBP pairs after the Conservatives win in the UK General elections. I believe there will be further continuation in this bullish trend.
Technically Speaking:
Recent price action in the past two weeks has shown the pair very limited to the downside. Resistance at 2.1460-2.1500 has been tested multiple times with plenty of conviction from bulls and the rejection has been very uneventful. This has led to the formation of an ascending triangle. I believe with recent PA that there is enough bullish momentum for a break on the upside. RSI and MACD shows room to the upside. The fib levels from the swing hi-lo of Dec 2014-Jan 2015 show that the recent attempt of bears to break the bullish trendline very unsuccessful as the pair strongly bounced from the 1.618 fib level and is ready to go to the 2.618 fib. Overall, the bullish trend will remain intact.
Fundamentally Speaking:
The BoE is deadset on raising rates in the former part of 2016 due to an uptick in inflation and various other Macroeconomic Indicators. Mark Carney (BoE Governor) warned in July for households to prepare for a "rate rise". The divergence in monetary policy between Boe and the RBA is large. RBA are very dovish however are reducing their use of expansionary monetary policy but with Yuan being devalued and other economic headwinds to Australia means that AUD will suffer in the latter part of 2015. Commodity prices as well as uncertainty in China means that investors are losing confidence in AUD.
Thank you for reading and trade safely,
Yours,
GekkoWS
Trade closed: target reached:
TP'd at 2.23500 after that amazing AUD dump!