LONG GBP/AUD from 1.9320
Updated
If you draw Fibonacci levels from the low of March 2013 to the high of August 2015 then you will see the price of GBP/AUD is bang on the 61.8 Fib level.
This level coincides with WS1 - weekly Pivot Support S1.
These levels should act as formidable support for GBP/AUD.
The previous candle to the current one closed as a pinbar running through both these levels.
This too is a BULLISH sign and coming as it does on these support levels then this is more evidence that prices may rise.
Added to that, we can see that this level has been supported for the last week and a half and numerous attempts have been made by GBP/AUD BEARS to push the price past 1.9320 without success.
In fatc there are approximately 13 touches of this support level going back to 7th August and the price has moved away on each occasion.
IT has to be pointed out though that every time the price has moved away., GBP/UAD BEARS have pushed the price back down again and its likely they will do so again.
As we can get a very tight STOP on LONG trades at 1.9304 this means the risk/reward on GBP/AUD LONGS is highly favourable should the BEARS decide to capitulate.
We have no confirming LONG trade signal on the Andean Oscillator on H1 with has the green BUY line reading zero but we do that a signal on M30 and lower time frames.
MACD on M15 has crossed over under the zero line and is heading north which is good.
I'm not overly confident on this trade but as previously mentioned, the Risk/Reward is high as the WP Mid Pivot is a potential initial target at 1.9410 and if that level of resistance breaks then WR1 at 1.95 is possible but first of all we need to see the price 1.9335 which would confirm that LONG trades would have a chance.
This level coincides with WS1 - weekly Pivot Support S1.
These levels should act as formidable support for GBP/AUD.
The previous candle to the current one closed as a pinbar running through both these levels.
This too is a BULLISH sign and coming as it does on these support levels then this is more evidence that prices may rise.
Added to that, we can see that this level has been supported for the last week and a half and numerous attempts have been made by GBP/AUD BEARS to push the price past 1.9320 without success.
In fatc there are approximately 13 touches of this support level going back to 7th August and the price has moved away on each occasion.
IT has to be pointed out though that every time the price has moved away., GBP/UAD BEARS have pushed the price back down again and its likely they will do so again.
As we can get a very tight STOP on LONG trades at 1.9304 this means the risk/reward on GBP/AUD LONGS is highly favourable should the BEARS decide to capitulate.
We have no confirming LONG trade signal on the Andean Oscillator on H1 with has the green BUY line reading zero but we do that a signal on M30 and lower time frames.
MACD on M15 has crossed over under the zero line and is heading north which is good.
I'm not overly confident on this trade but as previously mentioned, the Risk/Reward is high as the WP Mid Pivot is a potential initial target at 1.9410 and if that level of resistance breaks then WR1 at 1.95 is possible but first of all we need to see the price 1.9335 which would confirm that LONG trades would have a chance.
Trade active
2 hours ago the H1 candle closed well above the 61.8 Fibonacci level which coincides with WS1.
I'm now LONG this pair from 1.9330 with an initial target of 1.9410 (WPP Pivot).
I've cancelled the SELL STOP.
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