FOREX Chart Of The Day: Will GBPAUD Rally?
Will #GBPAUD Rally?
In this video, we break the market down using the top-down analysis to look for a long opportunity.
Watch the video to learn more…
Hi guys, welcome to today’s Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we will go through GBP/AUD as it was featured on Blueberry Jam – why we took the position and what we expect to happen.
The GB Pound is one of the strongest currencies at the moment, and one thing that I like about this was that the weekly timeframe on GBP/AUD was pretty bullish. You can see, here, that the market formed this double-bottom pattern and we were oversold on the RSI. The last time we saw the price in an oversold condition was down here, and you can see it was around the end of July or the start of August where we started to see this nice little rally there. That’s similar to what we have seen here. Another time that it went oversold is over here, and looking at the dates, it was around this time in August where we saw a little bit of a bottoming out and a huge rally up. I’m still looking for long opportunities. I still feel that this market will push to the upside, and I do quite like the idea of buying it up into this level around 1.8370s. So, I’m still happy to be a buyer here.
We’re now going into that daily timeframe. So, why did we want to look to buy on a daily timeframe? So, we can see that the weekly last week was bullish. And I said to myself going into this week: “Is there a couple of areas of interest where I’d like to buy from now?” Now, I’m going to look at previous structure points as an area of interest. I quite like this area, here, for a buying opportunity and yesterday pushed this wick to the downside, rejected it, then closed back within the previous candlestick range. When I see something like that, that suggests that it’s been rejected and we will see that little bit of upside. What I wanted to do at that point is to put an end of day position.
But if we’re going to the four-hour timeframe, what we want to see is a nice change in cycle. The market has come back down into this point. It’s rallying back to the upside. I want to see some double-bottom pattern, or not necessarily a double-bottom but some higher low coming through here, which we may get if the price retests this structure area. Then, we can look for further upside to this because GB Pound is very strong at the moment on the weakness table. It gained and is at a nice level for us to be a buyer. You can see the resistance, support, support. It’s looking good here; even the hourly is starting to trend to the upside, which is fantastic. Maybe we’ll get a retest of these highs before seeing some further upside through there, but it’s looking good here for some buying opportunities on GBP/AUD.
I like the fact that the stock markets have fallen a little bit today. It’s been a rocky day in terms of general market participants because of some US Dollar news thrown around. It’s shaking the markets slightly, but this is looking pretty good for some upside on GBP/AUD.
So, keep looking for those buying opportunities on this. It could be a good one to continue to buy up.
Thanks for watching. I’ll speak to you soon.
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