GBPAUD - Short potential
The pair has broken the consolidation on the lower timeframes and this presents us with a possible opportunity to get involved in what could end up being the trade of the week if fundamentals went our way, that said there is a good chance that the AUD Rate Decision overnight could throw a spanner in the works so if a position does present itself to us today make sure that the trade is managed accordingly with this high impact data. Looking at the technical then, the short position makes the most sense now due to the breakout, but we do still have a rather liquid area to contend with so short positions shouldn’t be entered until we either see a retest of 1.8380 and subsequent rejection away, typically a bearish engulfing pattern or a shooting star should act as enough confirmation that this retracement is complete. Alternatively, or even additionally we have an entry at 1.8320 that we can take advantage of also, a break below here is likely to open the door for a fallout down towards 1.8250 where we can monitor price action and may need to take our profit off the table but we wouldn’t expect this level to give us too much trouble and as such our target will be placed at 1.8120.
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