Forex Strategy: Long AUD/USD, Short GBP/USD
AUD/USD bounced as expected, with a pronounced bullish Piercing Line candlestick pattern on the weekly chart hinting at continued gains ahead. Positive RSI divergence bolsters the case for an upside scenario. I have now entered long in line with my fundamental outlook, initially targeting a multi-month horizontal pivot at 0.9640. A stop-loss will be activated on a close beneath 0.8847.
GBP/USD put in a bearish Three Inside Down candlestick pattern below resistance at a falling trend line set from mid-December 2012 and my short entry at 1.5463 has been triggered. I am initialy targeting 1.5352, the 23.6% Fibonacci expansion. A stop-loss is set to activate on a close above 1.5574.
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