Forex Trade Update: GBP/AUD Long-Term Reversal

Hey, forex friends! My short GBP/AUD trade is still open and I’m looking to make a few adjustments on this long-term setup. Tell me what you think.

Oh, but before that, make sure you take a look at my initial forex trade idea first.

Thanks to all the top-tier events lined up this week, we’ve seen a lot of movement on the comdoll crosses, including GBP/AUD. I zoomed in to the 1-hour time frame to spot any potential opportunities to add to my short position and I spotted this trend line pullback going on.

GBP/AUD 1-hour Forex Chart

GBP/AUD 1-hour Forex Chart

I’ve already adjusted my stop loss to my first entry at 2.0880 and I’m considering adding around the Fib levels near the descending trend line. That’s around the 2.0650-2.0700 levels, and I figured I’d wait for reversal candlesticks and for stochastic to turn from the overbought zone first.

Earlier today, Australia printed a wider-than-expected trade deficit, spurred mostly by a sharp 3% decline in exports. After that, the U.K. released a stronger-than-expected services PMI, which led to a strong pound rally. I’m worried that this might keep pushing GBP/AUD higher for the next few sessions so I think I’m gonna sit tight for now while keeping my eyes peeled for any signs that the downtrend is about to resume.

What do you guys think of my plan? As always, I’d look forward to getting your feedback on my trade ideas!

Cheers,

Happy time

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