GBPAUD Trade Idea
(Source: Tradingview - Past performance is not indicative of future performance.)
What are the charts telling us? I’ve got the 4 hour time frame up. There’s a big bearish engulfing candle at present which took us through the uptrend line. I’ve drawn in a support zone (orange area) as opposed to a line due to the range bound behaviour within it. There is also a triangle structure which has formed which doesn’t tend to have a directional bias, but does precede breakouts. If the lower bound of the orange range support zone breaks, then a short framework would take hold. In terms of targets on the upside, I’d like to see what price does around the 200-day SMA and 50-day SMA (around 1.893/4). Higher than that within the ascending channel we have some horizontal resistance around the 1.896/7 level.
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