FOREX Chart Of The Day: Will GBPAUD Reverse?

Hi guys, 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. Before we get into that, I’m going to go through some of the trades that we currently have running.
We have NZD/USD running. The market is pushing to the upside, finding a little bit of resistance at these previous structure highs, here. You could look to reduce some risk on this trade or wait to see how this one plays out.
We are in an uptrend. The market is in this range at the moment. We are looking to buy from the bottom of the range. The market is now approaching the top. So, hopefully, that can push to the upside.
In our Forex Market Outlook, we looked at the fact that the Kiwi was the strongest currency. Hopefully, that continues this week, and we see that market rally up to those targets.
EUR/NZD missed our target by spreads. The price did drop, through. But, we didn’t get hit by the spread. The market’s now rallied back to the upside. I’m still expecting some downside from here, it’s having a little bit of a pullback at the moment. We may see that crush through either tomorrow or the next couple of days; we could get a retest of these lows before the market pushes back down.
But essentially, this can reduce the risk in this previous structure high, if you wanted to. We could look at reducing that risk down here – moving that market into breakeven and seeing if that one continues to play out.
CAD/JPY came quite close to a stop loss but has reversed at the moment. I’m looking for the market to push it back down. What we would have to wanted to see is that four-hour change in cycle. We were looking for the market to create a lower high after this point, here, for something like that to happen. But, that didn’t happen. The market stuck us into the trade and then pushed back to the upside. Suppose, we do get a break in here. We may see that the market continues down for us into those lows we’re targeting, there. Because we are technically trading the daily range where you can see the markets are arranged in between these two points – this is what we’re looking to achieve, there.
But, I want to talk about GBP/AUD today. We spoke about this a couple of weeks ago or maybe three weeks ago, but the market is still hanging around this key level. We’ve had three tests of this level, the weekly has formed a nice reversal Doji candlestick, and we’re in that oversold condition on our RSI. When the market gave us those RSI conditions before, as we noted in the previous videos, we get a rally out of the market when crossing back over the 30 lines.
So, that’s what we’re waiting for here on this weekly timeframe but we could get involved a little bit earlier. So, Taurus on the weekly is looking oversold. The weekly price action is looking quite shallow in terms of the range and is quite low on the candlesticks. We’ve retested this level several times. That suggests that we could get that reversal forming. Again, it’s all down to trend.
Currently, the daily trend is to the downside, you can see those lower low and lower highs. But, the market found a little bit of support at this previous structure, giving us the idea that we’re getting a bit of an inverse head and shoulders pattern. If the market can break out this daily high, we can start looking for those longs for a long-term reversal perspective.
Looking at the four-hour timeframe, we could look for an earlier move if the price does take out this initial high. You’ve got the main resistance this high, here. Still, suppose the market were to break through this initial four-hour high. In that case, you could look for an early position around 1.8, then look for the market to rally and take that out. Then, continue to the upside, there, because you can see this four-hour. This is the longer-term inverse head and shoulders play we could be looking at here.
The market is looking quite good for a reversal set up, here on GBP/AUD. The GB Pound is looking pretty strong across most currency pairs, especially if you look at GBP/CHF and GBP/JPY. The weekly charts look quite good there. So, GBP/AUD is looking for a bit of reversal set up, here. Once again, I’m looking for a few conditions to be met. You may even look at this as an inverse head and shoulders this evening, and you may look for a buying opportunity depending on how this candlestick closes. You may see that on the Blueberry Jam later.
Keep an eye on GBP/AUD – it’s one of the charts to watch this week if the GB Pound does continue to find a little bit of strength.
I hope you enjoyed this video update. If you did, please give it a like and subscribe to the YouTube channel to see some more trading content. Thank you.
If you’re new to trading, it can be quite overwhelming. But fear not, you can try out trading the GBP/AUD currency pair by opening a demo account through Blueberry Markets. When you’re ready to trade with a live account, our customer support team will be there to assist you in your account transition.