GBPAUD Bearish Breakout Imminent: Points to Potential Downside

25 Mar

4-hour chart of GBPAUD reveals a critical juncture. We've observed a recent uptrend culminating in what appears to be a rising wedge formation. This pattern, characterized by converging trendlines, often signals a potential reversal, particularly after a sustained bullish run. The upper trendline has faced repeated tests, indicating weakening upward momentum. Crucially, the 2.04938 level acts as immediate support. A decisive break below this point would validate the wedge breakdown and likely trigger a significant bearish move.

Key Levels and Targets:

Immediate Support: 2.04938
Target 1: 2.03263 (Initial downside target)
Target 2: 2.00516 (70.0% Fibonacci Retracement)
Target 3: 1.97478 (100.0% Fibonacci Retracement)
Fibonacci Analysis: The price action has breached the 50.0% retracement level, suggesting a potential continuation towards the 61.8% and lower levels. The 70.0% and 100.0% retracements are critical downside targets.

Trading Implications:

Short Entry: A confirmed break below 2.04938 is the primary trigger for a short entry.
Stop Loss: A conservative stop-loss should be placed above the recent swing high or the upper trendline of the wedge to mitigate risk.
Risk Management: Given the potential for volatility, prudent risk management is essential.
Considerations:

Confirmation: A break below 2.04938 must be accompanied by strong bearish momentum and ideally, increased volume to validate the signal.
Fundamental Factors: Keep a close eye on upcoming economic data releases from both the UK and Australia, as these can significantly impact the pair.

26 Mar

Not

GBPAUD sell trade moving nicely for our Norwich members! +113 pips running in our private channel. Chart analysis showing strong potential for further downside.