Market Condition: GBP/AUD Pending Daily Breakout
Target 1: 2X ATR 1.6394
Target 2: 4X ATR 1.6068
Invalidation: Continued Consolidation
(Created using Marketscope 2.0 Charts)
The GBP/AUD continues to retrace off of its 2016 low of 1.6720. Traders may look for bearish breakout opportunities below this value. Entry orders may be considered, that way pending orders to sell the market are waiting in the even prices drop below 1.6720. It should be noted that Daily ATR reads at 163 pips for the GBP/AUD. This places a preliminary 2X ATR target near 1.6394. Alternatively, a 1X ATR stop may be considered near 1.6883 to create a 1:2 Risk/Reward Ratio.
It is possible that price action may fail to breakout. In this scenario, traders may elect to leave pending entry orders, or opt to wait for a larger retracement before entering into the trend.
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