Update on GBPAUD and reevaluation from my previous analysis
In my last analysis on GBPAUD I stated that I would initiate a long position at 1.8600. Because of a new realization in GBPUSD I will hold off until GBPAUD hits 1.84/1.83. The trajectory in GBPUSD looks like it's headed for 1.48. Additionally, GBPAUD shows far more structure and symmetry at the 1.83 level than the 1.86 level which only strengthens the re-evaluation.
Comment:
Update on GBPAUD:
Target Hit: Yes, both.
Target Trailed, why: No. Clear structure to close position.
Stop Hit: no
Signal for entry: Trendline/channel converging with strong horizontal price demand.
Trend continuation post stop breach: N/A
Risk/Reward: 1:4
Poor Stop Placement: No, but could have been improved.
Risk %: 2.1% per position (2 in this case) 4.2% total.
Reward %: 7% on position one, 10.7% on position two, 17.7% total.
Fundamental overlay: No
Would you take the trade today? What would you do differently?: Have an aggressive stop placed at 1.815 instead of 1.8027 to increase leverage.