As a 95% purely technical analyst, a strong belief of 'proper technicals paint a vivid picture in the FX market' is one that has been integrated over the time of extensive self studies in order to perfect and predict the next market movement..
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 BULLISH 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.
Target confluences: -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... enjoy :D
Nice post - I'm looking to see a retest of 1.86 then flip long.
Rational...
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.
Talk_Forex96
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Shaun's WIZARDDYYDYDYYY!!!
EzraCapital
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nice analysis
manijeh.kazemi.33
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Hi what is zoar view on this pair now
MagnusFX
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hitting the inner TL, looks like its going back to 1.90+!!
TomProTrader
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Multiple doji currently on the daily. Probably reasonable to expect the breakout either way to be quick and aggressive.
Lanmar
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Agree with long term analysis but it has to retrace for it be attractive.
Talk_Forex96
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Do you think it will have an outside return back into 8671?
Rational...
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.