Sterling is still being moved by Brexit months ago it was reported that a deal would be negotiated by November but it was reported that a decision would only be made next year. Which would make sense as we are in Q4 the time where everyone is slowing down and planning there December holidays. For now COT figures show that Non Commercials added +2k Longs positions and +7k Shorts... Commercial +5k Longs and +299 shorts... According to these stats Gbp weakness will continue in the market... Aussie shows Non Commercials +2k Longs and +2k Shorts... Commercials +6k Longs and +2.5k Shorts.. To me the Aussie currency will range but will move in the Market because of Golds movements.
Technically GbpAud Monthly shows a huge Oct Pin Bar rejection off 1.85100, 3 times with September coming close too. (pin bar strategy, wait for retrace before entering short)
Weekly candle shows a tug of war between buyers and sellers indicating confusion on direction. Because ill be looking for shorts I'm expecting a retrace to the 38Fib level.
Daily show the Bulls tried to fight back, with this week starting with a Gap the market will go long before turning and filling the gap.
4HR Chart shows the market still has not broken structure for longs so any movement up wards will be a false move.
Technically GbpAud Monthly shows a huge Oct Pin Bar rejection off 1.85100, 3 times with September coming close too. (pin bar strategy, wait for retrace before entering short)
Weekly candle shows a tug of war between buyers and sellers indicating confusion on direction. Because ill be looking for shorts I'm expecting a retrace to the 38Fib level.
Daily show the Bulls tried to fight back, with this week starting with a Gap the market will go long before turning and filling the gap.
4HR Chart shows the market still has not broken structure for longs so any movement up wards will be a false move.
Comment:
I still believe in my analysis. It will take time but we still need a viable retracement before GbpAud continues down. COT figures from last week shows the Aussie had major positions closed out on Longs and Shorts yet we see GbpAud moving short (building up liquidity in the market to go long I believe) ... Sterling also reported Longs being removed making the currency weaker... It should still dominate over the Aussie. Tuesday has news releases which should push the market Long.. But we will have to wait and see.