In previous posts, I have given my case on GBP pairs. GBPCAD, GBPAUD, and GBPNZD to be more exact. They have all been good trades so far on the 4 hour charts, BUT on the daily chart, we are still setting up for multiple higher lows!
With GBPAUD on the daily chart, you can see we have been in a downtrend with lower highs and lower lows until we hit a big support/flip zone. From here, we began to exhaust with no new lower lows being made. This is a tell tale sign of a reversal. We then broke above a previous lower high at 18170. According to simple market structure criteria, once we break this swing the trend is over. The downtrend is officially over unless we somehow break back below this support level. If that were the case, we could just range.
From here, you can see we went back to retest resistance now turned support. Buyers stepped in. So already confluences for a long with the lower high broken, the support zone retest, and also the head and shoulders pattern forming.
Finally, I did a fibonacci of this new move up and the retest also coincided with the 38.2 fib. A reaction at the 38.2 fib means the trend is very strong, in this case the uptrend.
Target for the upside are 1.8575 and then 1.8850.
With GBPAUD on the daily chart, you can see we have been in a downtrend with lower highs and lower lows until we hit a big support/flip zone. From here, we began to exhaust with no new lower lows being made. This is a tell tale sign of a reversal. We then broke above a previous lower high at 18170. According to simple market structure criteria, once we break this swing the trend is over. The downtrend is officially over unless we somehow break back below this support level. If that were the case, we could just range.
From here, you can see we went back to retest resistance now turned support. Buyers stepped in. So already confluences for a long with the lower high broken, the support zone retest, and also the head and shoulders pattern forming.
Finally, I did a fibonacci of this new move up and the retest also coincided with the 38.2 fib. A reaction at the 38.2 fib means the trend is very strong, in this case the uptrend.
Target for the upside are 1.8575 and then 1.8850.