GBPAUD - looking for a good price to re-enter short!

From my last post on this pair, we did see that push to the downside based on a couple of economic factors. First the speculation of the RBA cutting rates did not occur like I suspected. Instead the rates were held in at 1.50%. Keep in mind we know the RBA will cut rates and now we might see that come in as early as next month as they have now stated 3 rate cuts might be occurring this year. That tells us those have already been priced into the market. Looking at things from the pound’s perspective, we have the Brexit dilemma which keeps getting a twist especially with the resignation of Theresa May. A lot of rumors are going around that Pro Brexiters will push for a no deal while the other extreme want to remain in the EU. The British will not be able to renegotiate the deal May made with the EU. Hence two things, either they revoke Article 50 or a hard Brexit will happen and it won’t be pretty.

Moving to the technical analysis of this pair, I am looking for a retest of the 1.85 - 1.86 area as we currently sit on a temporary support to re-enter going short on this pair. The MACD confirms the bearish divergence just like I mentioned in my last post and with the fundamentals looking better for the Aussie, I am looking for this currency to pick up some steam. We should be seeing the 1.82 Price area once again.


Remember, patience is key! GL

DISCLAIMER!!!!
My Ideas are mine and mine alone and are only to provide my perspective of the current market situation. Do not take my posts as trading decisions for entries or exit. Trading the FOREX market is very risky and indulge in it at your own risks!