GBPAUD Long Term Short, Waiting for pullback to Enter.
Updated
Higher Time Frames make a case for a pullback and continuation short.
> Quarterly chart has bearish engulfing rejecting 50ema, which has acted as resistance recently.
> Monthly rejected horizontal resistance with bearish pressure, now looking to retest a minor resistance level on the pullback.
> Weekly forming a pullback to 50ema, horizontal resistance, 0.382 Fibonacci. At that point, looking for deceleration & reversal candles.
> Daily now starting to pullback, once it reaches weekly resistance level, I'll be looking for deceleration, price action patterns ( double tops?, ect... ), and reversal candles. Trade will be entered on the intraday charts.
> Target 1 - Horizontal support & Daily 0.382 Fibonacci for short term play.
> Target 2 - Start of weekly pullback, daily horizontal support.
> Target 3 - Weekly horizontal support area
I will be staying patient, at this point anything can happen.
> Quarterly chart has bearish engulfing rejecting 50ema, which has acted as resistance recently.
> Monthly rejected horizontal resistance with bearish pressure, now looking to retest a minor resistance level on the pullback.
> Weekly forming a pullback to 50ema, horizontal resistance, 0.382 Fibonacci. At that point, looking for deceleration & reversal candles.
> Daily now starting to pullback, once it reaches weekly resistance level, I'll be looking for deceleration, price action patterns ( double tops?, ect... ), and reversal candles. Trade will be entered on the intraday charts.
> Target 1 - Horizontal support & Daily 0.382 Fibonacci for short term play.
> Target 2 - Start of weekly pullback, daily horizontal support.
> Target 3 - Weekly horizontal support area
I will be staying patient, at this point anything can happen.
Note
> Price consolidated for a month on the daily chart in-between support and resistance without pulling back to weekly horizontal resistance/ 50ema/ 0.382 Fibonacci.> Now moving toward target 3/weekly support. Price could find support at that area, and still make a greater pullback to weekly resistance area stated above.
> If price breaks weekly support/ monthly trend line/ daily support zone, to the downside, then price could drop to monthly lows of 1.61500 before making any significant pullback.
Note
After my last update, Target 2 support was hit and rejected and price moved back up to my original expected pullback area but found resistance again at Target 1 and failed to pullback to weekly 0.382 fibonacci & horizontal resistance, but hit 50ema.On November 3rd, Daily formed a mini double top at Target 1 resistance with reversal candles and offered a intraday entry to get short to Target 2 and 3 again.
Price now hit profit target zone and weekly support. At this point, we have lots of support in this area, price can do anything.
Overall good trade, even though price never made the larger pullback on the weekly, we still had good resistance, price action and reversals signalling a lower point of entry.
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