GBPAUD – Double bottom or just a pull back? - the week of 09 May
In my opinion this pair is still strongly bearish. Yes, the candle of Thu made a lot of ground pulling back all of what it lost, but note how small the Fri candle is. The bulls just did not have much momentum, could not follow through - and this was NFP day when spikes and large moves happened on many pairs. Price is below the 200dma, I am ignoring the double bottom and staying with the bearish bias
We could see some continuation to the upside, but I don’t expect much ground to be covered before we continue to the downside. There may be a better entry possible, but I will stay with 1.7400 and target the 1.7140 region. This could be a potentially +2R trade.
If however, price continues to the upside with momentum, that would negate my analysis. I will not be interested in going long, instead would wait and watch – perhaps PA in the 1.7770 area would provide a short opportunity.
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We could see some continuation to the upside, but I don’t expect much ground to be covered before we continue to the downside. There may be a better entry possible, but I will stay with 1.7400 and target the 1.7140 region. This could be a potentially +2R trade.
If however, price continues to the upside with momentum, that would negate my analysis. I will not be interested in going long, instead would wait and watch – perhaps PA in the 1.7770 area would provide a short opportunity.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management in all your trades.
Trade active:
Price did not turn around, instead went up to the 1.7770 as I anticipated. I took a short and that trade is still active (in profit).