I posted just a few days ago about a key technical level on GBPAUD for a short opportunity that could lead to a Pattern confirmation. At the end of Tuesday's trading candle the market confirmed the break by closing well over 100 pips below the neck line.
As with all very significant breaks of we are looking to gain an optimal entry on this position by waiting for the market to retest the significant level. Patience is key.
Patterns typically have a measured objective that equals the distance from the neck line to the top of the 'head'
Sell Limit 2.06800 or Manual Entry
Stop Loss 2.10000
Target Profit 1: 2.0250
Target Profit 2: 1.9750
Target Profit 3: 1.9250
The market needs to respect the neck line that has been identified, look for a daily close ABOVE 2.0740 to negate this pattern. It is perfectly acceptable for the market to spike into this territory but CLOSE lower. The CLOSE of the daily candle is the significant factor.
Please do your own analysis before entering a trade. If you like what you see feel free to comment, follow or "like"