As I mentioned in my previous post, the GBP/AUD combines what I see as the strongest currency (AUD) with the current weakest currency (GBP). Conservative traders can sell as the market breaks down to a new low and place their stop above resistance. You find that this is too much risk, a move down to the hourly chart might offer better stop placement above another high which is not seen on a 4-hour chart. Aggressive traders could use their own approach to identify a current selling opportunity, but should maintain a 1:2 risk:reward ratio. If you risk 100 pips, look for at least 200 pips in profit. This seems to be one of the few pairs that did not change it current bearish status over the holidays. We should take advantage of this until there is a change noted.
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