GBPAUD Putting in a High or Time to Buy?

Talking Points

• GBPCAD fails at yearly high- August opening range is set
• Updated targets & invalidation levels
• Event Risk on Tap This Week

GBPAUD Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• GBPAUD posts daily reversal candle after failing to break new high
• Interim resistance 1.1375 backed by confluence zone into 2.1527- bearish invalidation
• Interim support 2.1076 backed by 2.0872 (monthly ORL)
• Break targets subsequent support targets 2.0650, 2.0553
• Daily RSI Divergence into the highs / support-trigger break / hold sub-60 - bearish
• Event Risk This Week: Limited

GBPAUD 30min

Notes: Another failed attempt to breach above a long-dated sliding parallel off the February highs leaves the near-term focus weighted to the short-side for the GBPAUD. A slope identified off the July high has continued to define price action with precision and the risk remains weighted to the downside while below the yearly high-day close at 2.1376. We’ll be looking to sell rallies / support triggers while within this formation with a breach above 2.1500 needed to put the long bias into play (bearish invalidation)

Interim support is eyed into 2.1122 with a break lower targeting 1.1012 and the weekly opening range lows into 2.0872. Note that a quarter of the daily ATR is a bit wider here with profit targets of 60-64pips per scalp. Event risk is limited out of the UK & Australia into the close of the week so we’ll keep a close eye on key developments coming out of the Asia/Pacific region as it continues to drive global market sentiment.

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Relevant Data Releases

Other Setups in Play:

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---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

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