GBP/AUD 4H Timeframe Analysis
Trend Analysis:
In the 4H timeframe, the GBP/AUD pair is currently in an uptrend, characterized by the formation of higher highs and higher lows. Recently, an inverted hammer doji formed at the 2.00500 level, followed by a bearish candle, indicating a potential price reversal. This reversal led to a break of a minor key support level, which has now turned into minor key resistance. The price has retraced and is now approaching this minor key resistance again, suggesting a potential accumulation of sell orders.
Price Action Expectation:
We anticipate that if the price breaks above the minor key resistance, it may trigger a manipulation phase that could liquidate many seller stop-loss positions placed above this level. Our primary objective is to wait for the price to break below the minor key resistance before entering a sell position.
Trade Setup:
Trade Type: Sell Stop
Entry Price: 1.98440 (just below the minor key resistance)
Stop Loss: 1.98860 (positioned above the liquidity zone to protect against adverse movements)
Take Profit: 1.97170 (targeting the next key support level)
Fundamental Outlook:
Impact on GBP/AUD:
Key economic indicators from the UK and Australia will significantly influence the GBP/AUD pair. Factors such as interest rate decisions, employment data, and inflation rates can affect the strength of both currencies.
Positive Economic Data from the UK:
If the UK releases stronger-than-expected economic data, it may bolster the GBP, potentially leading to a failure to break below the minor key resistance and resulting in bullish momentum.
Negative Economic Data from Australia:
Conversely, if Australian economic indicators show weakness, it could lead to increased selling pressure on the AUD, supporting our bearish outlook for GBP/AUD.
Trend Analysis:
In the 4H timeframe, the GBP/AUD pair is currently in an uptrend, characterized by the formation of higher highs and higher lows. Recently, an inverted hammer doji formed at the 2.00500 level, followed by a bearish candle, indicating a potential price reversal. This reversal led to a break of a minor key support level, which has now turned into minor key resistance. The price has retraced and is now approaching this minor key resistance again, suggesting a potential accumulation of sell orders.
Price Action Expectation:
We anticipate that if the price breaks above the minor key resistance, it may trigger a manipulation phase that could liquidate many seller stop-loss positions placed above this level. Our primary objective is to wait for the price to break below the minor key resistance before entering a sell position.
Trade Setup:
Trade Type: Sell Stop
Entry Price: 1.98440 (just below the minor key resistance)
Stop Loss: 1.98860 (positioned above the liquidity zone to protect against adverse movements)
Take Profit: 1.97170 (targeting the next key support level)
Fundamental Outlook:
Impact on GBP/AUD:
Key economic indicators from the UK and Australia will significantly influence the GBP/AUD pair. Factors such as interest rate decisions, employment data, and inflation rates can affect the strength of both currencies.
Positive Economic Data from the UK:
If the UK releases stronger-than-expected economic data, it may bolster the GBP, potentially leading to a failure to break below the minor key resistance and resulting in bullish momentum.
Negative Economic Data from Australia:
Conversely, if Australian economic indicators show weakness, it could lead to increased selling pressure on the AUD, supporting our bearish outlook for GBP/AUD.
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.