Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
GBPAUD Reversal at Interim Support- Scalps Target 1.9500

GBPAUD Reversal at Interim Support- Scalps Target 1.9500

What's on this page

Talking Points

GBP/AUD Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • GBPAUD correction now testing initial support at 1.95 (bullish invalidation)
  • Support break targets median line ~9350 & key support at 1.9185-1.9224
  • Resistance at 1.9820 backed by 1.9887 (bearish invalidation)
  • Breach targets longer-term resistance objectives at 2.0027 & 2.0230
  • Daily RSI coming into 50-support, break would reinforce current short-bias
  • Pending resistance trigger- breach targets near-term topside recovery
  • Event Risk Ahead: Australian Retail Sales & Trade Balance data tonight and Bank of England Interest Rate Decision tomorrow

GBP/AUD 30min

Notes:The correction off the February highs has now completed a 100% extension with the break of the weekly opening range lows taking the pair into near-term support at the 1.95-handle. A break below this level is needed to maintain our bearish bias with such a scenario targeting 1.9423 & more significant support at 1.9327/63. Interim resistance stands with the median-line off the highs (blue-dashed) with the short-bias now at risk near-term above this support barrier.

Immediate focus is on this support zone with intra-day divergence into the lows here and a pending resistance trigger-break warning of a possible recovery. A break of the US range highs targets 1.9630 & 1.9719 with a breach above the upper median-line parallel needed to shift the medium-term focus back to the topside (possible short entries?). Note that this is a long-range setup with a quarter of the daily ATR yielding profit targets of 49-53 pips per scalp. Caution is warranted heading into the Aussie data tonight with AUDUSD remaining vulnerable sub-7850 near-term. A similar setup is being tracked on GBPNZD which has already compromised a key support barrier.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Relevant Data Releases

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX at 13:30 GMT (8:30ET)

Interested in learning about Fibonacci? Watch this Video

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES