Horizontal S&R Legend:
Green dotted lines = Monthly
Pink thick lines = Weekly
Blue = Daily Support & Resistance.
When I was looking for trends, I was looking at the daily and I noticed that GBPAUD is forming this sort of wedge pattern that either has tried to break out if you look at it from the two black trendiness that I drew or is trying to break out if you reference the pink line that is thicker.
When taking into account your advice about scoping from the hourly and 4 hours, I see a sort of head and shoulders pattern or like a triple top that has been rejected off the pink trend line that I’ve drawn. In this scenario, I would wait to see if GBPAUD wants to drop to the downside or upside as I see a bearish engulfing candlestick forming. If it breaks through the 1.80200 level of resistance and claims the .618 fib level as the support I’ll go long. Otherwise, if it gets rejected off the 1.80200 I would short this and have my take profit zone around the .886 where we have seen a number of wicks and keep my stop loss at around the .618 fib level with a little bit of leeway.
Green dotted lines = Monthly
Pink thick lines = Weekly
Blue = Daily Support & Resistance.
When I was looking for trends, I was looking at the daily and I noticed that GBPAUD is forming this sort of wedge pattern that either has tried to break out if you look at it from the two black trendiness that I drew or is trying to break out if you reference the pink line that is thicker.
When taking into account your advice about scoping from the hourly and 4 hours, I see a sort of head and shoulders pattern or like a triple top that has been rejected off the pink trend line that I’ve drawn. In this scenario, I would wait to see if GBPAUD wants to drop to the downside or upside as I see a bearish engulfing candlestick forming. If it breaks through the 1.80200 level of resistance and claims the .618 fib level as the support I’ll go long. Otherwise, if it gets rejected off the 1.80200 I would short this and have my take profit zone around the .886 where we have seen a number of wicks and keep my stop loss at around the .618 fib level with a little bit of leeway.