GBP/AUD Set for Dip: Targets Below 1.93 with Strategic Stop
We're currently observing the GBP/AUD pair after a significant touch at the 1.94000 zone. The pair seems to be gearing up for a downward move. Here's a straightforward breakdown:
Initial Downward Target (Target 1): Our first goal is to see if the pair can reach the 1.92778 level. This would be the first sign of a successful bearish push.
Further Downside Potential (Target 2): If the momentum continues, we may see the pair slide further to the 1.9187 mark. This would constitute a more substantial bearish movement.
RSI : The RSI (Relative Strength Index) suggests that sellers are gaining strength, especially since we've spotted a divergence – where price and RSI are not in agreement, often a harbinger of a trend change.
Additionally, the 4-hour RSI points to overbought conditions, backing up our anticipation of a downward trajectory.
Stop Loss: To manage risks effectively, a stop loss is recommended above the 1.94500 level. This is to protect against unexpected bullish spikes that go against our analysis.
While the bearish signals seem clear for now, always remember to manage your trades with caution and consider the possibility of market surprises.
Initial Downward Target (Target 1): Our first goal is to see if the pair can reach the 1.92778 level. This would be the first sign of a successful bearish push.
Further Downside Potential (Target 2): If the momentum continues, we may see the pair slide further to the 1.9187 mark. This would constitute a more substantial bearish movement.
RSI : The RSI (Relative Strength Index) suggests that sellers are gaining strength, especially since we've spotted a divergence – where price and RSI are not in agreement, often a harbinger of a trend change.
Additionally, the 4-hour RSI points to overbought conditions, backing up our anticipation of a downward trajectory.
Stop Loss: To manage risks effectively, a stop loss is recommended above the 1.94500 level. This is to protect against unexpected bullish spikes that go against our analysis.
While the bearish signals seem clear for now, always remember to manage your trades with caution and consider the possibility of market surprises.
Trade closed: stop reached:
