fxmonarchy
Long

GBPAUD long continuation 200+ pips opportunity

FX:GBPAUD   British Pound / Australian Dollar
Pound has been recovering for some time already, but since making double bottom pattern and forming new/old support at key daily confluence level we got that much wanted last swing high breakout. Pair is aiming towards 1.84 level, which is next vital area to look at.
GBP is banking some gains since equities and markets cheer risk on sentiment. Aussie seems to slow down a bit, while GBP has more room to go upwards.
It's too soon to call some wind change and new dircetion for this pair both due fundamental and performing issues which are stopping GBP for further apprectiation vs risk on currencies in this environment (Brexit, economic outlook), but some positive signs are surely on the way.

AUD on the other hand is more exposed to China and it's employement issues which are questioning China's recovery despite industrial and service sector gains.
Technicals are corelated with secular and sentiment analysis in short term, so this may be good time to enter longs until we get more confirmation.

IDEAS AND LEVELS:

Entries above 1.81 with tighter stop loss on momentum ride could be benefitable, but I will wait Monday to see in which direction we will go, so either breakout of 1.82 on momentum or buying the pullback near 1.81 sounds reasonable rather than entering on current levels. If we don't get daily close above 1.81 trade will not be considered.


NOTE: Please read info and observations about entires if you consider to go along with the chart. Just like from last ideas I didn't have entries open so some people mistaken analysis with actual trades. Risk reward tool is just visual tool to make chart look more easier to explain in allignment with info written here. Trade at your own risk!

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