30 minute chart shows a nice bullish cypher setting up. There's a couple of bearish inside bars at the top of the formation.
RSI is over brought and heading down.
Pattern is inline with the support and resistance wedge that has formed.
Looking for the pound to strengthen and then to short around 1.78 which will be a confluence of previous resistance and 200 moving average. It's also around the 38.2% retracement since the trend in May.
Carleton Capital are LONG this morning from 1.6022.
Our GBP algorithm has identified a possible LONG from support at 1.6007 and we have entered the market on confirmation of the signal.
STOP is 1.5995 for a 27 pip risk trade.
Initial target is 1.6100 (200sma on M1) and then we will evaluate the price action.
GBPAUD - Drop to support zones and rebound
GBP is retreating badly against all pairs of forex because of Brexit, but all bad news will come to the end. and market often go against what people believe. so when fear rise, GBP could rebound suddenly and out of expectation. so watch out at those support zones below the price, anyone of them can be the turning...
As expected the RBA deciced to keep the OCR unchanged at 150bps. 30D Aussie bank bills implied only a 2% chance of a cut, down from the 10% we saw several weeks ago. There were few hints as to further policy, and it certainly feels as if the calls/ rhetoric for further cuts has been dampened in recent meetings following the august reduction. As well as in recent...
Buying Potential - You can see a consolation being formed which was around for about 3 days. If it breaks through it on the upside it could rally to around the resistance (Red colored)
If it breaks the support (Orange Colored) expect it to hit around the 1 month + old support (Blue Colored).
Gov Lowe speech Highlights:
-RBA GOV LOWE SAYS INFLATION IS EXPECTED TO REMAIN LOW FOR SOME TIME, BUT THEN TO GRADUALLY PICK UP AS LABOUR MARKET CONDITIONS STRENGTHEN
-RBA GOV LOWE SAYS OUR VIEW IS THAT A FLEXIBLE MEDIUM-TERM INFLATION TARGET REMAINS THE RIGHT MONETARY POLICY FRAMEWORK FOR
-RBA GOV LOWE SAYS A FLEXIBLE MEDIUM-TERM TARGET IS THE BEST WAY...
This move was taken due to analysing price action and the momentum of the market on the (4H) chart we took a 2 bar setup that was actually at support. We could potentially see price move down to Support at "1.7100" I currently have a trailing stop loss to lock in some profit if price moves against me.