Is It Time To Start Buying GBP/AUD ?? Detailed Analysis
Today's trading idea is a LONG setup on GBPAUD.
Currently we have entered a Monthly demand zone from 2017 and approaching a weekly demand zone also from 2017 as pictured above. The weekly zone is untested the price range being from 1.691 - 1.664 it is highly likely price will drop down into this zone very soon as it's about to breach the 1.70.
On the 4hr chart pictured above we are already starting to get divergence signals on the MACD as we edge closer to the Weekly demand zone this is evidence selling momentum is starting to slow as we approach this area. What I expect to happen is a fast drop into this zone.
How I will enter this position is waiting for a MACD divergence signal to occur on 4hr or daily charts or wait for the same signal to occur on my custom indicator.
Profit Target for this position will be around 1.75 which is the weekly supply zone that caused the breakdown to the new low in the current trend.
Stop loss will be well below 1.66 and if a clean break and close of this level happens trade is invalidated.
Price will likely ebb and flow inside the weekly level making good opportunities for short term BUY trades every time price creates a new low or BUYING at the bottom on a range when it forms.
I will also look to enter a SHORT term daily position today below 1.70 if similar entry signals occur on the 15/30min charts with a STOP LOSS around 40 pips and a target of 1.71.
Hope you enjoyed this breakdown
Currently we have entered a Monthly demand zone from 2017 and approaching a weekly demand zone also from 2017 as pictured above. The weekly zone is untested the price range being from 1.691 - 1.664 it is highly likely price will drop down into this zone very soon as it's about to breach the 1.70.
On the 4hr chart pictured above we are already starting to get divergence signals on the MACD as we edge closer to the Weekly demand zone this is evidence selling momentum is starting to slow as we approach this area. What I expect to happen is a fast drop into this zone.
How I will enter this position is waiting for a MACD divergence signal to occur on 4hr or daily charts or wait for the same signal to occur on my custom indicator.
Profit Target for this position will be around 1.75 which is the weekly supply zone that caused the breakdown to the new low in the current trend.
Stop loss will be well below 1.66 and if a clean break and close of this level happens trade is invalidated.
Price will likely ebb and flow inside the weekly level making good opportunities for short term BUY trades every time price creates a new low or BUYING at the bottom on a range when it forms.
I will also look to enter a SHORT term daily position today below 1.70 if similar entry signals occur on the 15/30min charts with a STOP LOSS around 40 pips and a target of 1.71.
Hope you enjoyed this breakdown
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