GBPAUD: Critical juncture
Updated
GBPAUD is approaching the yearly MA, and also about to complete a downtrend signal in the daily chart.
It's possible that shorts will be unwound soon, by year end, we might see a large short squeeze rally in this pair, and maybe even the opening of new institutional longs for the new quarter.
I'm really interested in entering with the tightest stop possible, so I'll be monitoring this for entry on the long side.
If the yearly MA were to fail to contain the decline, then GBPAUD is in very bad shape and we can expect continuation to meet my weekly downtrend targets, around 1.98 or close.
For the time being this looks like a large W bottom setting up, and has more positives than negatives for longs, so I'll attemp to ride the upcoming trending leg up.
Cheers,
Ivan Labrie.
It's possible that shorts will be unwound soon, by year end, we might see a large short squeeze rally in this pair, and maybe even the opening of new institutional longs for the new quarter.
I'm really interested in entering with the tightest stop possible, so I'll be monitoring this for entry on the long side.
If the yearly MA were to fail to contain the decline, then GBPAUD is in very bad shape and we can expect continuation to meet my weekly downtrend targets, around 1.98 or close.
For the time being this looks like a large W bottom setting up, and has more positives than negatives for longs, so I'll attemp to ride the upcoming trending leg up.
Cheers,
Ivan Labrie.
Note
Long 2.05776Target 2.1404
Stop loss 2.04410
Half position size.
Note
Monitoring for long entry.Note
Going long if it retraces a bit more.Note
We can rejoin this trend many times, seems fairly strong.
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