Scalping GBPAUD Pullback- Targets in View Ahead of Aussie Data, BoE
- GBPAUD pullback in focus ahead of key event risk
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- GBPAUD holds confluence resistance at yearly high-day close 2.2037
- Breach targets resistance objectives at 2.2217 & 2.2676
- Interim support 2.1670/80 backed by key support at 2.1420-2.1527- bullish invalidation
- Momentum divergence into the highs leaves the pair vulnerable for a pullback
- Key Event Risk Ahead: Australian Employment, China CPI tonight & Bank of England Rate Decisiontomorrow
Notes: GBPAUD is trading within the confines of a descending median-line formation off the weekly highs with the risk for a deeper pullback before resumption of the broader up-trend. The pair is now testing confluence resistance into the 2.19-handle with subsequent resistance seen at 2.1933. We’ll reserve the 2.1975/90 region as our bearish invalidation level (looking for short triggers while below this region) with a breach above targeting the weekly highs and beyond.
Interim support targets are eyed at 2.1753 backed by key near-term confluence support at 2.1668/80. A break below this level keeps the immediate short-bias in play targeting 2.1609 & our broader bullish invalidation level down at 2.1420-2.1527. Note that this is a wide-range scalp with a quarter of the daily average true range (ATR) yielding profit targets of 68-71 pips per scalp. Caution is warranted over the next 48 hours with employment data out of Australian, inflation data out of China and the BoE interest rate decision likely to fuel added volatility in the Sterling & Aussie crosses.
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Relevant Data Releases
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---Written by Michael Boutros, Currency Strategist with DailyFX
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.