FOREX Chart Of The Day: GBPAUD Short Opportunity
GBPAUD to go short?
The Australian Dollar continues to strengthen offering opportunities against the weaker currencies.
The Great British Pound is a currency that is under-performing making GBPAUD a great pair to trade.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to take a look at GBP/AUD, looking for the potential for this market to continue to the downside.
So we’re looking for the price to pullback into these previous lows, this double top neckline area.
The Australian Dollar has remained stronger on the back of a potential Biden victory. This is adding a little bit of softer AU Dollar alongside a little bit of risk on the market. So, we’re seeing those risk currencies such as the Australian Dollar gain some value.
We can see by just looking at this, technically, the price has recently retested these previous structure highs on GBP/AUD, rejected, then started to see that AU Dollar strength comes through. Now, we’ve broken through these key-lows and the neckline area.
What I would be anticipating here is for the price top pullback into that neckline area where we can look for further shorting opportunities.
I was expecting the volatility to be a little bit higher today. That’s what I was looking for – a bit deeper retracement before seeing the market continue down. It doesn’t look like we’re going to get that move through there.
So, we might end up cancelling this position in the end, but still looking for the same outcome regardless. We’re now looking for the price to pullback into that neckline area where we can then look for further shorting opportunities on lower time frames.
The good thing is as well as we’ve broken out this channel, so you can see the market was finding support at this trend line through here. We have this anchored trend line through there, where the price is also finding some resistance a couple of times just through there.
So now we’ve broken out this channel as well. It’s now all pointing towards further downside for GBP/AUD.
As I said, the AU Dollar is gaining some value, if we just take a look at that weekly timeframe. Now, it looks to be put in quite nicely to the downside and we could even see this drop a little bit further towards the 175 area.
So, we’ll keep an eye on this one, we’ll look for further trading opportunities on this. I like the opportunity of getting short. Nice four-hour trend developing as well, so we’ll see what happens there, but that neckline area would be a key-area to look for that short opportunity.
Thanks for watching this video update, and I’ll speak to you soon.
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