GBP/AUD Long

As we can clearly see, the market has been consolidating between the 1.79000 and 1.74750 area for a couple of weeks. During this time, price has created an M formation and is also currently testing the 1.74750 support. Firstly what we usually want to see after an M formation is for price to reach the neckline and in this case the 1.76150 area which is our target for this trade. Another strong signal for a move to the upside is the fact that price has also created a Double Bottom at the 1.74750 support giving us better propabilities for this long position. We need to consider of course the possibility that price won't do as we analyzed and will continue with it's bearish momentum, so we won't be placing a trade before we have another strong confirmation on the 4h chart.

That's my analysis for GBP/AUD and I hope you like it, I will see you on the next one!