Kumowizard
Short

GBPAUD - Analysis on a friend's request: "When to go short?"

FX:GBPAUD   British Pound/Australian Dollar
223 0 2
One of my friends asked me on week if I had any view on GBPAUD             pair. Well, I do not trade this cross at all, but I am happy to help and share my thoughts about it. Let's see what are the Japanese methods tell us:

Weekly:
- Absolutely bullish Ichimoku setup: Price is well above Kumo, Tenkan and Kijun Sen, all average lines pointing up. This is a bullish mkt, and will likely stay that way for longer time.
- Do wee see any exhaustion of bullish Price action? Not at the moment. HA candles are all green with no lower wicks, the Oscillator is bullish , haDelta and SMA3 both above zero line.
- The only small signal to watch this week is the possible haDelta cross below its SMA3. The week has just started, will see if the bullish Price action can keep this pace or we see some consolidation later.

Daily:
- Obvious bullish trend channel with very bullish Ichimoku setup.
- HA candles are green, so is today's candle, with no lower wick. However today's candle has smaller body and we also see some deterioration in haDelta/SMA3. It is time to watch, as within next two days we may see a signal for a pause, consolidation or maybe even for a pull back within the bullish trend .
- Price is also kind of close to range top, and got far above Kijun Sen. In these cases we quite often see a corrective pull back towards equilibrium.

Basically my friends question was if it is good time to sell the pair? Well, it can be, but I would still wait for Tenkan Sen to catch up to Price and for more HA signals as I wrote above. We should see doji like or at least one red candle for a better risk-reward swing short entry.

p.s.: If you check the lower, 4 Hrs time frame, there you can see some chance for a top consolidation. The reason I have not attached 4H chart is that I do not want to force anybody right now. Especially "All we need is just a little patience!" :-)
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