Market Breakdown:GBP/AUD analysis
Updated
Based on the higher time frames, the price has been declining rapidly to the downside, the trendline was broken and tested our key daily area of support 1.81500 which was created by the previous swing to the low before retesting the key institutional area of supply1.88000. I will be monitoring candlestick behaviour around this key region to see if we can get more signs of rejections to signal signs of a reversal to the upside confluence zone of 1.84000 which is supported by the MA acting as resistance, with addition to the resistance zone being a 50% retracement level. The sterling has been showing some strength these couple of days, on top of that Australian currency may decline in the next few days, due to RBA rate cuts suggesting signs of dovish sentiment.
- A 4HR bullish engulfing candle break above the intraday counter-trendline could signal further momentum to the upside. However, what would invalidate my position is if price rallies further down to 1.8000(institutional demand zone) before we could consider taking longs.
- A 4HR bullish engulfing candle break above the intraday counter-trendline could signal further momentum to the upside. However, what would invalidate my position is if price rallies further down to 1.8000(institutional demand zone) before we could consider taking longs.
Trade active
SL moved 30 pips above long entry, trade is running risk-free
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