I kept posting about GBPAUD Short trade for sometime. But we didn’t see a big change until today.
Finally the price dropped dramatically, and I think there should be another opportunity to enter this short trade, if you didn’t short it.
The basic idea of this Short trade was.. On Daily chart, trying to short from the Role Reversal Resistance, 55EMA, while Stochastic was in Overbought zone.
Yesterday, we found Bearish Divergence on H4 chart. So I was already shorting this pair, and finally we saw the first big red candle.
The target should be, at least to the Prev low, which is 2.02.
So if you want to join this Short trade, you should wait a bit more…
until the price comes back to Fib 38.2 – 61.8% level on Hourly chart. I would also like to include DPP as the possible short zone.
The whole idea is … simply sell from the next “LOWER” high. Also please note that there is a Role-Reversal Resistance at Fib 50% level.
I smell something around there.
Thus, when the up cycle ends on Hourly Stochastic, and if you find the price is forming Lower High (lower than 2.092), then I would like to sell.
Hope you found this setup interesting.
YJ Baik – Forex.Today @ Tokyo