GBPAUD Short - Don't dismiss a trade idea too quickly

OANDA:GBPAUD   British Pound / Australian Dollar
VA – Value Area
Liq.P – Liquidity Point
PiPo – Pivot Point
BO – Break-Out
H1 – Hourly Time-frame
M15 – 15min Time-frame
LTF – Lower Time-frame
HTF – Higher Time-frame

Magenta horizontal Ray – Area of Interest
Magenta rectangle – Gap / Area of Significance


GBPAUD Don't dismiss a trade idea too quickly

After retracing to the previous swing high and experiencing a strong impulsive move to the downside, the price formed two smaller consolidations before beginning to form a larger bear flag.

The positioning and size of the consolidation, coupled with the fact that the price is trading above the previous low, make this trade higher risk. However, if the price forms a smaller consolidation below the wick and preferably trades at or below the low to the left, we could suddenly have a high-quality entry.

Don't dismiss a trade idea too quickly. I covered GBPAUD last week already, and the same idea is still valid, albeit with slightly different PA.

However, if the price aggressively BO above the Liq.P and/or begins to form a consolidation above it, the short trade idea becomes obsolete

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