Second Analysis – GBPAUD – Strong impulse sells likely to lead to an oversold bounce play, following technical points to consider,
- Trend aggressive sells
- Weekly S/R HTF Support
- .618 Fibonacci (lower high)
- Stochastics flat
- No climax
GBPAUD is respecting its weekly S/R in the immediate term. This is a high time frame support that the market has respected historically, thus a bounce here is probable.
The .618 Fibonacci is a probable lower high projection as the immediate trend is .
The and Stochastics are both approaching oversold conditions, this is indicative of an oversold bounce coming to fruition.
On the there is however no climax node signalling a temporary bottom. Cautious approach is to be taken when trading the oversold bounce.
Hope this analysis helps!
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