The monthly chart of GBPAUD shows some potential for a pullback from the current bull trend.
Fib retraces from Sept 2001 & Oct 2008 highs to Mar 2013 low give 50% and 61.8% values respectively for this years high (so far) in August. The alignment of the two values is appreciable given the 7 year span between fibs.
Furthermore we have a completed ab = cd pattern, with a 2.618bc = cd leg. (ab ≈ cd)
The 2.618 extension of bc capped price (so far) and shows very good confluence with the fib retrace(s) described above.
Finally the oscillators show signs of bearish divergence from an "overbought" position.
The overall confluence prompted me to take an early prospective short position (2.2036) with appropriate stop according to my risk mgmnt, tgt 1 ≈ 2.0500 - ~ 23.6% ad
Fib retraces from Sept 2001 & Oct 2008 highs to Mar 2013 low give 50% and 61.8% values respectively for this years high (so far) in August. The alignment of the two values is appreciable given the 7 year span between fibs.
Furthermore we have a completed ab = cd pattern, with a 2.618bc = cd leg. (ab ≈ cd)
The 2.618 extension of bc capped price (so far) and shows very good confluence with the fib retrace(s) described above.
Finally the oscillators show signs of bearish divergence from an "overbought" position.
The overall confluence prompted me to take an early prospective short position (2.2036) with appropriate stop according to my risk mgmnt, tgt 1 ≈ 2.0500 - ~ 23.6% ad
Trade closed: target reached:
2.05 target achieved, closed 50% position, stop moved down to 2.07
