Brexit worries pushing down GBPAUD
Updated
****Quite a risky trade due to Brexit uncertainty, take half your normal lot size
GBP pairs are being quite difficult to trade over the last months, being subject to very volatile movements. However, this could be a good opportunity worth the try:
1. Using the Fibonacci retracement tool, plotting it from the previous swing high to the latest swing low, we can observe that price managed to retrace up to the 0.5 level, leaving a strong wick that nearly reached 0.618, but retracing back down.
2. Again, it retested the 0.5 level but didn't managed to break it, forming a strong bearish engulfing candle, breaking the 4 hour support (now converted into 4 hour resistance)
3. It retested the 4 hour resistance, however it didn´t managed to break it to the upside, forming a strong bearish engulfing candle. This shows the strong seller power that there is currently, signalling that price could come back down to retest the weekly support.
Fundamentally, I see a week GBP due to Boris Johnson's parliament suspension and all the negative comments surrounding UK.
Take profit: weekly support, around 1.78370
Stop loss: slightly above the latest lower high
GBP pairs are being quite difficult to trade over the last months, being subject to very volatile movements. However, this could be a good opportunity worth the try:
1. Using the Fibonacci retracement tool, plotting it from the previous swing high to the latest swing low, we can observe that price managed to retrace up to the 0.5 level, leaving a strong wick that nearly reached 0.618, but retracing back down.
2. Again, it retested the 0.5 level but didn't managed to break it, forming a strong bearish engulfing candle, breaking the 4 hour support (now converted into 4 hour resistance)
3. It retested the 4 hour resistance, however it didn´t managed to break it to the upside, forming a strong bearish engulfing candle. This shows the strong seller power that there is currently, signalling that price could come back down to retest the weekly support.
Fundamentally, I see a week GBP due to Boris Johnson's parliament suspension and all the negative comments surrounding UK.
Take profit: weekly support, around 1.78370
Stop loss: slightly above the latest lower high
Trade closed: target reached
Guys 4 days later our target of almost 250 pips has been reached, what a trade!! GBP strong weakness gave us that strong push to the downside. Hope you took the opportunity!!
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