Trade of The Day – GBP/AUD

Facts:

• GBPAUD is trading above the 100-period moving average form D1 interval
• The pair broke above the key resistance at 1.9081
• The pair invalidated 1:1 structure

Recommendation: Trade: Long position on GBPAUD at market price Target: 1.9720, 2.0085 Stop: 1.8920

Opinion:

GBP/AUD has been trading in a downward trend recently. Looking at the D1 interval, one can see that the main sentiment may change into bullish. The price broke above the upper limit of the 1:1 structure which, according to the Overbalance strategy, may herald trend reversal. In addition the price sits above the 100-period moving average which supports market bulls. Taking this into account, continuation of the upward move looks to be the base case scenario for now. We recommend going long GBPAUD at market price with two targets: 1.9720, 2.0085. We also recommend placing a stop loss at 1.8920.

Source: xStation5