I know GBPAUD has been the darling of many short sellers since 19 March 20, offering more than 3000 pips profits for those who shorted it. Congratulations.
But as it is now coming to a halt (near), is it time to go reverse and long this pair ?
Not yet, I say. Firstly, there are 2 near bottoms that we can see from the chart, 9 Oct 19 and 12 Aug 19. As the price has broken down from the 9 Oct 19 support, then we must be mentally prepared that it is more likely to hit the next level of support, which is 12 Aug 19.
Thus, I will continue to put this pair on my watch list for now until it is somewhere near 12 Aug 19 support and then I will see if there is a further breakdown (possible) or it starts to go sideway (consolidate) before a reversal takes place.
By using the Day chart, a longer time frame , you eliminate more volatility in the price action and not get entangled in the ups and downs like you will see in 1H or shorter time frame.
Hope this helps. This theory also apply to EURAUD as well.
But as it is now coming to a halt (near), is it time to go reverse and long this pair ?
Not yet, I say. Firstly, there are 2 near bottoms that we can see from the chart, 9 Oct 19 and 12 Aug 19. As the price has broken down from the 9 Oct 19 support, then we must be mentally prepared that it is more likely to hit the next level of support, which is 12 Aug 19.
Thus, I will continue to put this pair on my watch list for now until it is somewhere near 12 Aug 19 support and then I will see if there is a further breakdown (possible) or it starts to go sideway (consolidate) before a reversal takes place.
By using the Day chart, a longer time frame , you eliminate more volatility in the price action and not get entangled in the ups and downs like you will see in 1H or shorter time frame.
Hope this helps. This theory also apply to EURAUD as well.
Note
a nice bullish engulfing candle close. I took a small position to longNote
please note that when it moves above the resistance line at 1.80686, that does not mean it will continue to go up linearly. It can hover around this range , up and down for a while to shake off the weak buyers.Weak buyers are those that may take the positions and wanted to get out fast with tens of pips profits and the moment they see the pairs they are trading ends in red , they get out and move to the next pair. Such high frequency and volume will drive the price action to go in volatility mode. So, be patient and always use a Stop Loss. There remains a possibility that price can still breaks down 12 Aug 19 bottom.
Note
It was a fake breakout only to disappoint the early bulls getting in as it hit 1.80 on 9 & 10 Jul and reverse on 13 Jul back down.
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.
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.