GBPAUD

Note

I'll try and update my analysis and keep it detailed as possible!

So, the reasons for this GBPAUD long opportunity is:

1) That a possible cypher pattern is forming as it has met the requirements of the B leg falling between the 0.5 and 6.18 Fib zone. Therefore, if this is a cypher pattern it has to meet the next requirements of the C leg heading between the 1.414 and 1.272 level.

2) It has bounced of previous structure. Hence, this is indicating it may not go down to the support level as past levels have shown that it has gone down smoothly. However, it could be a simple retest to the downside.

3) If we see a retest and it retests above the 1.67544 level then it will indicate a bullish trend with Higher lows and Higher highs.

4) The moving averages potentially could be crossing indicating the up trend EMA - 8
EMA - 200 and SMMA - 21.

5) I have identified a bullish trend line here seen in yellow.

6) A major support and resistance zone shows that this is likely to hit these targets. Before questioning if it could break it and complete a cypher pattern or hitting it and going bearish. Hence, I would put take profit between the 1.77908 and 1.76623 area to be on the safe side.

Happy Trading!

JakeSandhu

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JakeSandhu

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