Mihai_Iacob

GbpAud- False break could lead to a drop

Short
OANDA:GBPAUD   British Pound / Australian Dollar
Last week, GbpAud broke above the 1.9170-1.9200 resistance zone and reached a high of 1.94.
However, the pair couldn't hold gains and dropped again under this resistance.
Usually, false breaks lead to strong reversals and drop/rise to the next important level and, in this case, the next support at around 1.86.
That being said, traders should look to sell around 1.92, and considering a stop loss above the recent high, a 1:3 risk: reward could be achieved.


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