Another strong market philosophy is the implementation of multiple confluences (mainly target confluences). By utilising the laws of Price Action , the traders thought processes can now be aligned with the markets medium-long term potential profit taking zones, however this is only a fragment of market analytical success as the data from ALL timeframes need to be crunched in order for the Risk-Reward ratio to make SENSE for the longevity of your profitability.
The technical artwork displayed on the Daily GBP/AUD is self explanatory... the FIRST factor which is very evident is the higher highs and higher lows. The weekly Fibonacci point A does indeed go quite some time back (lows of April 2013 ...with FIB B snapped onto the highs of jan 2014..
FIB C weekly Retracement was confirmed at 1.7388... and there is now a 85-90% chance that -27% FIB D Extension (orange horizontal line) 2.0500
ALTHOUGH...the bias is and a target zone has been established, this pair can still perform pullbacks before breaking and closing above 1.9175..this could go hand in hand with my AUD/USD analysis...slight pullback on both pairs before resuming the Weekly/Daily trend.
-Flag Pole extension
-Range height alignment with historical key levels
-Fibonacci D extension (weekly)
-2574 PIP up move expected from FIB weekly C Retracement (1.7388)
Use this overall analytical projection in line with your current trading knowledge and initiative...
GBP/AUD - Daily MACD is finally turning after the recent big rally, suggest the fight is on for the last Candle of 2015 to set a Tech level.
USD - big GDP y.y 5% but more recent data suggests USD recovery may flatten out in coming months. USD/JPY I believe is a good proxy for USD strength and is topping.
AUD/USD is putting in a temp bottom and could see a bounce up to 0.84 before resuming down to perhaps 0.79. If there is a bounce to these levels there is the strong possibility the RBA will intervene in currency market or perhaps a further rate cut.
GBP/USD - big miss on GDP y.y figure 2.6% v's 3% expected, therefor will likely see some more downward pressure. Remember the strength in GBP is the belief of rate hikes to quell the housing market - and the housing eco data is softening without a rate hike.
EUR/GBP - looks likely to make a recovery also pushing downward on GBP.
GBP/AUD @ 1.86 - AUD/USD bounce will likely be exhausted, Draghi will likely push QE on EZ, GBP/USD will have bottomed by then, all playing into technical reversal to 2.02 @ 38.2% Fib back to Aug 2002 High - from there AUD will have bottomed and GBP/AUD will weaken - flip Short!
Fundamentals + Technical Analysis = great trading, good luck all.