Hey folks! I’m trying my hand at currency crosses again with this retracement setup on GBP/AUD. Y’all know how I dig break-and-retest scenarios, right?
This pair has just broken below a major support level and area of interest around 1.8300 and might be ready for a pullback, especially since that area lines up with the 50% Fibonacci retracement level. Stochastic is still making its way towards the overbought region though so I might wait for it to cross down before hopping in.
As for fundies, recent economic data from the U.K. hint at some weak spots, which was probably why the pound caved to risk aversion in the past few days. Aside from that, I think the rise in gold prices could be enough to support the Australian dollar for now. I’ll keep tabs on the upcoming data, such as the U.K. CPI and Australian jobs data, to see if my biases are correct though!
If I’m able to short around 1.8300, I’ll set my stop above the 61.8% Fib level and aim for the recent lows close to the 1.8000 major psychological handle. Do you think this trade idea could work out?
Other Popular Articles: