A while back, this pair completed a bearish harmonic after hitting my monthly resistance trendline. It came down to the support zone at the .382 fib and now we can see that GBPAUD has retested my monthly trendline, and once again rejected it. The last weekly candle closed very bearish, making a weekly double top. After the wick fills over the last two days it proceeded to move down with yesterday's daily candle closing bearish as well. I'm expecting a lower low during the London session and for the short swing to hit profit levels after at least a couple days.
I entered my short positions at 1.8960 with a Stop Loss at 1.9030 (resistance zone). Take profit falls at 1.8610 which is the upper level of the first weekly support zone. Having a better than usual risk to reward, this trade has the potential to reward 300+ pips.
I entered my short positions at 1.8960 with a Stop Loss at 1.9030 (resistance zone). Take profit falls at 1.8610 which is the upper level of the first weekly support zone. Having a better than usual risk to reward, this trade has the potential to reward 300+ pips.
Trade closed: stop reached:
GBP has shown bullish price action against many pairs and after breaking above the GBPAUD monthly trendline, we can conclude that it will likely have a big bull run.