Last weekend I highlighted a short set up on GBP/AUD. This weekend we get the set up for the long. There is a break of the short term trendline and a 3 wide outside candle pattern. The GBP has now had the healthy retrace it needed and should resume the larger trend. In the chart the blue lines are the daily channel and the yellow line is a very strong H4 level inside the channel. I did not jump on the 3 wide pattern right away for a couple reasons. The 3 wide pattern wasn’t as strong as I like to see it, and also it was still under that very strong H4 level. Friday we got a close above the H4 level, and I went long. For the longer term traders this might be a good point to add to your position. Although not at the bottom of the daily channel, there is a good potential for this to have a 1k pip move to the upside in a relatively short time. As always I stress money management for any traders taking this. This pair is very volatile and can move hundreds of pips in the blink of an eye.
And one more with this last weeks pivots.
