GBP AUD key levels moving forward
Hi Guys,
The GBP AUD pair has been heading south recently and presents some nice trading opportunities either way price moves from the current level.
On the chart ( sorry about the messy look) the large red box contains what could be very strong resistance. Looking left on the chart that zone is a very key level as price has had some huge moves from there in the past. It also is the last support before the most recent high. The zone also contains the 50 MA 200 MA and AVWAP from the most recent high and the high from 8/23. The thick red line is the AVWAP from 8/23 and Ive highlighted that because as can be clearly seen with the black circled areas this AVWAP has acted as resistance firstly and then support on numerous occasions so there is a high likelihood that price will find resistance if it pulls back to this AVWAP again. The black line, is the AVWAP from most recent high and along with the 50MA served as resistance on the 30 April and 1 May candles. With the 200 MA now in the same cluster that should present formidable resistance if price pulls back to the zone. The smaller red box above would serve as next resistance should price break through the first red box. If price heads further down into the green box/ zone then a pullback from there back to the red box would result in a pullback to the golden fib zone between 0.5 and 0.618 retracement. Entry using lower time frames could present some nice risk to reward trades.
The green highlighted box is obvious support area and contains daily order block. There is also a bat harmonic pattern forming with 0.86 entry level just short of the zone. In all likelihood the entry level will be a bit more than the recommended 0.86 but so long as we dont break the low that should be fine with a stop just below the low. As with the resistance zones lower time frame entries using candlestick or chart patterns or price action choch BOS etc could present some nice trading opportunities.
Safe Trading all
The GBP AUD pair has been heading south recently and presents some nice trading opportunities either way price moves from the current level.
On the chart ( sorry about the messy look) the large red box contains what could be very strong resistance. Looking left on the chart that zone is a very key level as price has had some huge moves from there in the past. It also is the last support before the most recent high. The zone also contains the 50 MA 200 MA and AVWAP from the most recent high and the high from 8/23. The thick red line is the AVWAP from 8/23 and Ive highlighted that because as can be clearly seen with the black circled areas this AVWAP has acted as resistance firstly and then support on numerous occasions so there is a high likelihood that price will find resistance if it pulls back to this AVWAP again. The black line, is the AVWAP from most recent high and along with the 50MA served as resistance on the 30 April and 1 May candles. With the 200 MA now in the same cluster that should present formidable resistance if price pulls back to the zone. The smaller red box above would serve as next resistance should price break through the first red box. If price heads further down into the green box/ zone then a pullback from there back to the red box would result in a pullback to the golden fib zone between 0.5 and 0.618 retracement. Entry using lower time frames could present some nice risk to reward trades.
The green highlighted box is obvious support area and contains daily order block. There is also a bat harmonic pattern forming with 0.86 entry level just short of the zone. In all likelihood the entry level will be a bit more than the recommended 0.86 but so long as we dont break the low that should be fine with a stop just below the low. As with the resistance zones lower time frame entries using candlestick or chart patterns or price action choch BOS etc could present some nice trading opportunities.
Safe Trading all
Comment:
Viewing the chart on 1 hr or 15 min time frame shows ideal entries on these timeframes everytime price touched the thick red avwap, keeping in mind the overall trend in higher time frame ( 1 day) . Therefore price being under AVWAP and pulling back to it presented sell trades and price being over the AVWAP and pulling back to it presented long opportunities. The lower timeframe shows head and shoulder pattern, engulfing candlesticks , double tops, CHOCH and BOS at all the circled points along the AVWAP and are good examples of what to look for at these key levels.