Trade Plan (Pending): I am selling GBP/AUD at 1.9420
GBP basket - the dominating single currency for this trade plan is Sterling (GBP). There are two fundamental aspects that I am looking to drive Sterling lower:
• the United Kingdom has entered a technical recession.
• we are seeing lower inflation data.
From a technical perspective, we have formed a bearish Gartley formation on the daily chart. The intraday chart highlights the completion of a bearish Bat formation at 2,174. I look for rallies in GBP to find selling interest.
It should also be noted that studies suggest selling GBP in FX Crosses.
GBP/AUD - we have broken out of an Ending Wedge formation to the downside. The measured move target of 1.9183 has NOT been achieved.
We are building a bearish Head and Shoulders pattern. The previous resistance (left shoulder) is located at 1.9420. The reverse trendline resistance from the wedge breakout is located at 1.9453. This is our resistance zone (1.9420-53).
On a break of 1.9192 (swing low), the measured move target is located at 1.8860. Bespoke support is located at 1.8864 and 1.8855.
Selling at 1.9420 (Jan 17 swing high), with a stop loss of 1.9520 (above the reverse trend line), with a target of 1.8864 (bespoke), offers a risk-reward setup of 5.56R.
I am selling GBP/AUD at 1.9420
SL: 1.9520
TP1: 1.8864
Risk/Reward Ratio of 5.56R
#tradeplan #GBP/AUD
• the United Kingdom has entered a technical recession.
• we are seeing lower inflation data.
From a technical perspective, we have formed a bearish Gartley formation on the daily chart. The intraday chart highlights the completion of a bearish Bat formation at 2,174. I look for rallies in GBP to find selling interest.
It should also be noted that studies suggest selling GBP in FX Crosses.
GBP/AUD - we have broken out of an Ending Wedge formation to the downside. The measured move target of 1.9183 has NOT been achieved.
We are building a bearish Head and Shoulders pattern. The previous resistance (left shoulder) is located at 1.9420. The reverse trendline resistance from the wedge breakout is located at 1.9453. This is our resistance zone (1.9420-53).
On a break of 1.9192 (swing low), the measured move target is located at 1.8860. Bespoke support is located at 1.8864 and 1.8855.
Selling at 1.9420 (Jan 17 swing high), with a stop loss of 1.9520 (above the reverse trend line), with a target of 1.8864 (bespoke), offers a risk-reward setup of 5.56R.
I am selling GBP/AUD at 1.9420
SL: 1.9520
TP1: 1.8864
Risk/Reward Ratio of 5.56R
#tradeplan #GBP/AUD
Comment:
STOPPED