GBP/AUD trading opportunity- Buy/sell asset: Sell GBP/AUD
- Entry price: 1.90582
- Stop loss: 1.92034
- Leverage: 1x
- Take profit 1: 1.89500
- Take profit 2: 1.87700
- Take profit 3: 1.85890
- Timeframe: 1-2 weeks
- Maximum profit: 2.46%
- Maximum loss: 0.7%
GBP/AUD has been in a bearish trend since last August and the price has made lower lows since then. Currently, the price is making a correction after dropping to the 1.85893 level. The price is likely to retest the 1.90582 resistance level before dropping further.
The 1.90582 is a major resistance level that has also proved strong support in the past. I am expecting the price will continue its bearish momentum after retesting this level.
I am considering the 1.90582 resistance level for short entry and my target for this trade is the 1.85890 support level. There is also a bearish order block and 0.38 Fibonacci level around the same level.
GBP/AUD fundamental analysisThe Non-farming payroll (NFP) data will be published on the US dollar today, if the data turns out positive the price of GBP/AUD will go up and when the USD strengthens the Australian dollar gets weaker. Conversely, if the data turns out negative for the US dollar the price of GBP/AUD will drop.
However, the price of GBP/AUD is likely to remain stable in the coming week as there are no major fundamental events that could impact the price of GBP/AUD substantially.
Great Britain pound to Australian dollar trade idea takeaways- The price of GBP/AUD is likely to drop further after retesting the 1.90528 resistance level.
- The price is likely to drop to the 1.85890 support level in the coming days
- Multiple take-profit levels have been added to secure profit along the way.
- The risk-to-reward ratio on this trade is 1:3.2.
- The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
- Good luck!
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