GBPAUD short and long opportunities, 1 hour timeframe
The pair did not quite hit the MPO of the reverse H&S pattern, but depending on the broker, MPO on other charts may have been hit.
The price formed a nice uptrend that looks like a retracement before continuation. The resistance is at 50% fib level and 200 SMA, that is a strong level. Technically, both options could be traded depending on your entry signal, short on the break of the trend line or long on the break of the fib and 200 SMA.
Fundamental data is generally positive for pound today, wages disappointed slightly, they signalled to be higher than inflation, causing investors to reconsider their projections regarding summer rate hike in the UK. AUD has been weak today due to RBA minutes release, which had a dovish tone to it.
While generally we are in the risk -on mood at the moment, it could easily shift with one bit of breaking news.
There is economic data released for AUD tomorrow and on Thursday, so watch it if you plan a long term trade.
Happy Trading!
The price formed a nice uptrend that looks like a retracement before continuation. The resistance is at 50% fib level and 200 SMA, that is a strong level. Technically, both options could be traded depending on your entry signal, short on the break of the trend line or long on the break of the fib and 200 SMA.
Fundamental data is generally positive for pound today, wages disappointed slightly, they signalled to be higher than inflation, causing investors to reconsider their projections regarding summer rate hike in the UK. AUD has been weak today due to RBA minutes release, which had a dovish tone to it.
While generally we are in the risk -on mood at the moment, it could easily shift with one bit of breaking news.
There is economic data released for AUD tomorrow and on Thursday, so watch it if you plan a long term trade.
Happy Trading!