GBP/AUD is in a corrective mode amid bullish intraday bias. Please pay attention to the buy-on-dips opportunity when the correction is over.

Good afternoon everyone! GBP/AUD was corrected after reaching the 1.7965 supply zone. Since the daily bias is still bullish, traders can watch for long opportunities by validating buy-on-dips signals.

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Analysis and Recommendation

Let's take a look at the following GBP/AUD H4 chart below: 

gbpaud 2

Based on the H4 chart above, it has been pointed out that GBP/AUD is testing the demand zone around 1.7865–1.7800. The demand zone has the potential to be the key area for GBP/AUD to rise again. That way, observe the opportunity to buy-on-dips when the price approaches the demand zone.

Be aware if the pair continues to decline to pass the key support level 1.78 on the demand zone since GBP/AUD is likely to continue its corrective move towards a deeper demand zone around 1.7678–1.7623. 

Therefore, set a long position at 1.7865 when the price manages to enter the demand zone and there is a bullish signal confirming it. Stop loss may be positioned at 1.7800, while the profit target on 1.8013. 

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: 1.8013, 1.7965
  • Support: 17865, 178 (psychological level), 1.7678, 1.7623