GBP/AUD is on a bull run and testing the H1 zone supply. Wait for a sell signal when the price moves within the zone.
Hi fellow traders! GBP/AUD is seen moving within a limited range. This is because the daily trend for the medium to long term is still neutral and does not yet provide clear direction. Therefore, looking for opportunities in the short term (intraday) could be the main scenario this time.
Analysis and Recommendation
Let's take a look at the following GBP/AUD H1 chart below:
Based on the H1 chart above, it has been pointed out that GBP/AUD is currently crawling up to test the supply zone of 1.7458 – 1.7485. Since this pair is still ranging, the supply zone can potentially weaken this currency pair again for short-term testing to the demand zone of 1.7405 – 1.7360. That way, wait for a short signal when the price moves to test the supply zone at 1.7475.
However, be aware if the price manages to rally and penetrate the 1.7485 level since a confirmed breakout around this area can potentially make GBP/AUD rise and test the higher supply zone around 1.7527 – 1.7556.
Here are two trading scenarios that can be prepared:
- Therefore, set a short position at 1.7458 when the price manages to enter the supply zone and a bearish signal confirms it. Stop loss may be positioned at 1.7485, while the profit target is at 1.7405.
- Alternatively, set a long position at 1.7485 when a significant breakout confirmation. Stop loss may be positioned at 1.7458, while the profit target on 1.7527.
Keep in mind to always use risk and money management before trading! In addition, to make use of trailing stops, don't forget to exit the market as soon as you find a reversal signal!
GBP/AUD key levels:
- Resistance: 1.7556, 1.7527, 1.7485, 1.7458
- Support: 1.7405, 1.7360