After a significant downtrend, price action on GBPAUD reached a key demand zone where buy-side interest has historically been strong. The pair broke below a previous support level but quickly recovered, suggesting a possible liquidity grab. This aligns with the wick rejection seen under the daily support, indicating strong bullish intent.
A descending trendline was also broken, confirming a potential reversal or at least a short-term correction. With price now consolidating above this zone and early bullish structure forming on the lower timeframes, the conditions support a long setup.
Entry Details:
• Entry Price: ~1.8346
• Stop Loss: ~1.8281 (65 pips)
• Target: ~1.8655 (309.5 pips)
• Risk/Reward Ratio: ~5.6:1
Key Zones:
• Support Zone: Demand area previously tested
• Resistance/Target Zone: Aligned with previous market structure and clean inefficiency above
Conclusion:
This trade is based on a potential shift in market sentiment following a false break of daily structure. The risk/reward is highly favorable, and the trade offers a good opportunity for trend reversal or corrective rally. All parameters are set based on a clearly defined technical setup.
A descending trendline was also broken, confirming a potential reversal or at least a short-term correction. With price now consolidating above this zone and early bullish structure forming on the lower timeframes, the conditions support a long setup.
Entry Details:
• Entry Price: ~1.8346
• Stop Loss: ~1.8281 (65 pips)
• Target: ~1.8655 (309.5 pips)
• Risk/Reward Ratio: ~5.6:1
Key Zones:
• Support Zone: Demand area previously tested
• Resistance/Target Zone: Aligned with previous market structure and clean inefficiency above
Conclusion:
This trade is based on a potential shift in market sentiment following a false break of daily structure. The risk/reward is highly favorable, and the trade offers a good opportunity for trend reversal or corrective rally. All parameters are set based on a clearly defined technical setup.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.