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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • LIVE IN 30 MIN: In this session, Strategist @DavidJSong will discuss trading strategies for the top event risk in the week ahead https://www.dailyfx.com/webinars/175202251
  • The possibility of a Covid-19 cure by year end keeps market sentiment high despite ongoing political tensions. Get your $USDMXN market update from @HathornSabin here: https://t.co/6DIf6krA3E https://t.co/IxeRbjHpQm
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/qqWZkK1G8B
  • The commodity currencies, AUD, CAD, and NZD, which typically benefit from their higher yield profile relative to other currencies (the carry trade), no longer hold this advantage. Get your #currencies market update from @CVecchioFX here: https://t.co/3oWXhp0hCX https://t.co/qOgXnf0JKK
  • The long-term outlook for the Euro has been boosted significantly by a Franco-German proposal for a €500 billion coronavirus Recovery Fund, even though an agreement is not yet close. Get your $EURUSD market update from @MartinSEssex here: https://t.co/onP43pXuDi https://t.co/nynDJ9P6br
  • On Friday, EUR/GBP surged to an over six-week high at 0.8940 then closed the weekly candlestick in the green with a 2.3% gain. Get your $EURGBP market update from @malkudsi here: https://t.co/ln09Ijn7rd https://t.co/OCe7fzGGC0
  • The Canadian Dollar has proven stable in recent weeks following a dramatic turn lower in March, guided to the downside by energy markets. Get your $USDCAD market update from @CVecchioFX here: https://t.co/7tlrn74X3t https://t.co/OGqZzWaxU4
  • As political tensions between the US and China increase, $gld is picking up a safe-haven bid ahead of the long weekend and may look to press higher. Get your $XAUUSD market update from @nickcawley1 here: https://t.co/boUn4vyfCO https://t.co/sVtnBALhw7
  • Both WTI and Brent crude futures have conformed to the negative risk tone, however, investors will be eying the latest Baker Huges rig count for another drop in #oil rigs. Get your market update on currencies, commodities & stocks from @JMcQueenFX here: https://t.co/G6CEBzNXVA https://t.co/gosmDwkKSX
  • The $USD gained ground while the $SPX Index edged lower headed into the final trading session this week. Get your #equities market update from @RichDvorakFX here: https://t.co/lgn2Pg0TAH https://t.co/Wq3t8Q67U0
GBP/AUD Bearish Breakout.

GBP/AUD Bearish Breakout.

2016-01-12 15:10:00
Walker England, Forex Trading Instructor
Share:

Market Condition: GBP/AUD Bearish Breakout

Target 1: 2-x ATR Extension (1.9711)

Target 2: 4-x ATR Extension (1.9251)

Invalidation: 1-X ATR over Resistance (2.0401)

GBPAUD Daily Chart

GBP/AUD Bearish Breakout.

(Created using Marketscope 2.0 Charts)

The GBP/AUD has resumed its downtrend after testing trendline resistance found near Mondays high, at a price of 2.0979. This turn can allow trend traders an opportunity to join the trend on a breakout and the creation of a lower low. The current swing low for the pair is found at the December 2015 low a price of 2.0176. With entry’s set below this point, traders can prepare potential breakout targets using ATR, which currently reads at 230. This sets a 2-x ATR price target near 1.9711. Longer-term targets using a 4-x ATR can be set at 1.9251

In the event that prices fail to decline and move back through trendline resistance, any bearish breakouts would be at least temporarily invalidated. In this scenario, entry orders may be deleted and traders may begin looking for other opportunities. Conversely, in the event of a breakout to a new low, a move in price back above resistance (previous support) may invalidate this signal. Traders using ATR may elect to set stops near 2.0401 using a 1-x ATR extension. When coupled with the targets mentioned above, this would allow traders to look for a minimum 1:2 Risk/Reward ratio.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

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

DISCLOSURES

News & Analysis at your fingertips.