FX:GBPAUD British Pound/Australian Dollar
This has been an excellent pair to trade in these past few months. The question now remains how far up will it go. After the recent impulsive moves that resulted in 1,000 pips it seems like it's ready to attack the 2.00 level with lots of strength. We definitely want to be keeping an eye on the that's relatively steep. A retracement is a given and we could see a downward break. If that's the case then we want to be looking at the zone around 1.9700-50 for signs go long. On smaller time frames we could be looking at opportunities to go short below the .
Thanks for your comment Tim. I would likely go short when the trendline breaks at the confluence with the 2.00 level. A rejection of the 2.00 level along with the break of the trendline would constitute a high-probability signal. My stop loss would be the last highest swing point above 2.00 and my target would be the support zone as drawn on the chart. Should the break happen before then then I would wait for it to drop to the support zone and then I'd go long.