GBP/AUD: Starting to look for longs...
I'm going to start looking at phasing in longs from here, first one relatively small, looking to add later if it continues down...
This will be the start of building a longterm long position, people trading short-term can look for lower TF setups, but remember it's still in downtrend and judging by the stochastics hidden bearish divergence on this TF it might get another leg down... Eventually I hope to see a wedge developing on the daily to get a killer long out of that but it's too soon to tell at this stage (thus 'hope')...
The important short- to mid-term level to eye for a long is the 1.6500 round level or rather the 'zone' as shown by the blue circle (roughly between 1.6620 and 1.6450)..., beyond that, longer term, the next big round level is obviously 1.6000 which is just below a possible major support zone and the 0.786 fib of the large up move seen on the weekly charts (also see my daily study linked below) so I'm not sure if we will get that low...
This will be the start of building a longterm long position, people trading short-term can look for lower TF setups, but remember it's still in downtrend and judging by the stochastics hidden bearish divergence on this TF it might get another leg down... Eventually I hope to see a wedge developing on the daily to get a killer long out of that but it's too soon to tell at this stage (thus 'hope')...
The important short- to mid-term level to eye for a long is the 1.6500 round level or rather the 'zone' as shown by the blue circle (roughly between 1.6620 and 1.6450)..., beyond that, longer term, the next big round level is obviously 1.6000 which is just below a possible major support zone and the 0.786 fib of the large up move seen on the weekly charts (also see my daily study linked below) so I'm not sure if we will get that low...
Trade active:
I entered my first small long when I published this idea last week, it went against me but that wasn't really surprising... (look at my comment on stochastics, it went as expected...).
I added another long just now, if it goes up to my first entry point I will close that one out and keep this new one...
Beyond that I will be adding longs at 1.6625 and 1.6510 (orders set) next for my second long entry.
I will leave room for a third entry at the big support zone (levels to be determined), which will be the third and final (and largest) long entry...
That is of course if PA confirms it, otherwise I will cancel or adjust my entries...
I added another long just now, if it goes up to my first entry point I will close that one out and keep this new one...
Beyond that I will be adding longs at 1.6625 and 1.6510 (orders set) next for my second long entry.
I will leave room for a third entry at the big support zone (levels to be determined), which will be the third and final (and largest) long entry...
That is of course if PA confirms it, otherwise I will cancel or adjust my entries...
Comment:
Short-term traders take profit (bingo!). Longterm could consider taking partial profits or trail SL...
Could continue a little further up still but stochastics getting oversold again (RSI not just yet...):
Could continue a little further up still but stochastics getting oversold again (RSI not just yet...):
Comment:
We went over the resistance zone and are now close to the MA's and possible trendline so be sure to take partial profits if you haven't already...
Comment:
Current situation and speculation on next moves...:
I think we will get back to at least the resistance area at 0.7050, so another 100 pips or so...
Short-term traders could consider taking partial profit and moving SL to BE, certainly when we get to the S/R area.