Looking to Sell EUR/GBP, AUD/USD
AUD/USD entered consolidation mode having taken out resistance at the top of a falling channel set from April. The move hints a significant correction upward is ahead but follow-through has been lacking thus far. Still, the fundamental case for a corrective bounce remains reasonable. With that in mind, I will continue to look for a recovery as an opportunity to enter short (pending technical confirmation of ebbing bullish momentum).
EUR/GBP put in a bullish Piercing Line candlestick pattern above support in the 0.8583-90 area marked by a horizontal pivot dating back to mid-February and the 38.2% Fibonacci retracement. Near-term resistance is at 0.8636, the 23.6% Fib, with a break above that exposing the July 17 high at 0.8710. Alternatively, a reversal below support eyes the 50% level at 0.8553. The weekly chart seems to outline the makings of a short trade setup but confirmation is absent for the time being. I am monitoring the pair for a short entry opportunity.
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