GBPAUD OUTLOOK - Potential long or short opportunity
This pair is looking very interesting as I have a possible potential long and short setup.
This pair is technically still bullish and that is my long term bias however there is
a long term descending trend line in which a double top formation was made at this S/R level as price failed to make a higher high. In addition on weekly chart a few weeks back we had a bearish pin bar signalling bearish movement. If price breaks support/neckline and ascending trendline @ 2.147 level our double top formation will be valid and a short entry can be warranted.
Target will be 2.10 as this lines up perfectly with previous support and is also the size of range which is the double top and neckline added on.
We have a long bias due to the ascending channel and price making continuous lower highs and higher highs.
price is approaching a strong ascending trendline, 61.8 fib level, dynamic S/R (inbetween Ma's) in which a potential double bottom can also be formed @2.147. A new higher high is due and I believe we could see it very soon. Furthermore we have a potential ABCD formation which is still valid and playing out and our fib extensions of this move -127 is also in confluence with major monthly S/R level.
If good price action presents itself around the 2.147 level a long entry can be taken however for more confirmation you can wait for a break and retest of counter trendline or better yet a break of previous swing high @ 2.208 level to target the D extension at around the 2.30 area.
This pair is technically still bullish and that is my long term bias however there is
a long term descending trend line in which a double top formation was made at this S/R level as price failed to make a higher high. In addition on weekly chart a few weeks back we had a bearish pin bar signalling bearish movement. If price breaks support/neckline and ascending trendline @ 2.147 level our double top formation will be valid and a short entry can be warranted.
Target will be 2.10 as this lines up perfectly with previous support and is also the size of range which is the double top and neckline added on.
We have a long bias due to the ascending channel and price making continuous lower highs and higher highs.
price is approaching a strong ascending trendline, 61.8 fib level, dynamic S/R (inbetween Ma's) in which a potential double bottom can also be formed @2.147. A new higher high is due and I believe we could see it very soon. Furthermore we have a potential ABCD formation which is still valid and playing out and our fib extensions of this move -127 is also in confluence with major monthly S/R level.
If good price action presents itself around the 2.147 level a long entry can be taken however for more confirmation you can wait for a break and retest of counter trendline or better yet a break of previous swing high @ 2.208 level to target the D extension at around the 2.30 area.