Pound on Top - GBPAUD CONFLUENCE x4
As Friday draws to a close its time to get those weekly time frames out and see what is cracking. In the Forex market, it's the Aussie that looks to be showing signs of weakness. Here we have a QUALITY weekly set-up!
The GBPAUD has been bullish since around the beginning of 2013 and that doesn't look likely to change anytime soon, with a relatively weak Aussie against the growing safe haven of Europe, the British Pound.
Since September 2014 price has been following this trend line nicely and sure enough as the week closes, we see absolutely no reason for that not to be any less true than before. A BIG Hammer candlestick ended the week but what makes this particularly significant is its location.
Following the current trend line we can see that it crosses the 1.9000 weekly support level, more or less, where price has retraced, with the long lower shadow crossing both lines. To add to this confluence; drawing the appropriate Fibonacci retracement shows that the 0.618 level lays on top of the 1.9000 support, creating a wonderful barrier for price to break through before it can go short, not impossible of course, but.... Unlikely.
So here are our 4 obvious factors of confluence -
1. HUGE Low Test/Hammer Candlestick Pattern
2. 1.9000 Support Rejection
3. 0.618 Fib Retracement
4. Trend Line Bounce
Those of you not happy with this and wanting more confirmation, I suggest the daily, where you'll see cloud cover, a doji and a bearish engulfing candle for the end of the week.
For more analysis, both technical and fundamental, please visit our blog - forexvader.com
Note- blog is still coming together, we invite those who wish to visit and comment, any suggestion will be recieved with open arms, thank you!
The GBPAUD has been bullish since around the beginning of 2013 and that doesn't look likely to change anytime soon, with a relatively weak Aussie against the growing safe haven of Europe, the British Pound.
Since September 2014 price has been following this trend line nicely and sure enough as the week closes, we see absolutely no reason for that not to be any less true than before. A BIG Hammer candlestick ended the week but what makes this particularly significant is its location.
Following the current trend line we can see that it crosses the 1.9000 weekly support level, more or less, where price has retraced, with the long lower shadow crossing both lines. To add to this confluence; drawing the appropriate Fibonacci retracement shows that the 0.618 level lays on top of the 1.9000 support, creating a wonderful barrier for price to break through before it can go short, not impossible of course, but.... Unlikely.
So here are our 4 obvious factors of confluence -
1. HUGE Low Test/Hammer Candlestick Pattern
2. 1.9000 Support Rejection
3. 0.618 Fib Retracement
4. Trend Line Bounce
Those of you not happy with this and wanting more confirmation, I suggest the daily, where you'll see cloud cover, a doji and a bearish engulfing candle for the end of the week.
For more analysis, both technical and fundamental, please visit our blog - forexvader.com
Note- blog is still coming together, we invite those who wish to visit and comment, any suggestion will be recieved with open arms, thank you!