Hello guys,
This is the last trading day of the year and as usual, we want to close the week and the year on a positive note.
Yesterday, I pointed out a Euro under-valuation relative to AUD as shown by technical indicators. Well, there is a better entry in this currency pair and I thought maybe you should take advantage of this morning star and reap profits assuming it goes as planned.
The daily chart stochastics is trending around the oversold territory and chances of a buy signal being printed after today’s price action is high. That is also dependent on if GBP bulls continue pushing prices higher.
In the 4HR chart, we not only have a stochastic buy signal but after this candlestick, bulls might actually break and close above the minor resistance trend line connecting the last 4 weeks highs. Ideal take profit is December highs but you can move your stop loss and lock in 300 pips once a 1:3 risk reward ratio has been hit.
Trade as follows:
Buy: 1.7290
Stop Loss: 1.7190
Take Profit: 1.7750
Have a good trading day and let’s all have an awesome 2018!!!!
Cheers!!

gbpaud 4hr chart for December 29, 2017

Source: Dalmas

gbpaud Daily chart for December 29, 2017

Source: Dalmas

4 thoughts on “MORNING STAR REVERSAL GBPAUD TECHNICAL ANALYSIS”

  1. Charles Bidner says:

    Thankyou Dalmas. Will have a look at this pair now. I don’t usually watch this pair but surprised myself when I found I do have this chart drawn up already! Have a fantastic 2018!

    1. Dalmas Ngetich - FOREX.TODAY says:

      Hey Charles, Happy New Year!!!! Lets see where this pair will take us especially in Q1 2018. Even though I have my doubts-the weekly chart is overbought and with a strong bearish engulfing pattern-I will give this pair time. I entered this trade today because I was waiting for higher highs but I’m long eurnzd and gbpaud. What do you think of eurzar? I just posted about it but I’m going long say tomorrow when there is a little bit of correction in the 15 minutes chart.

  2. Charles Bidner says:

    EURZAR? I have to admit Dalmas, the ZAR is not a currency I follow. A quick look at the charts and acknowledging that I am long EUR, it opened just above the MM2, long target to MM4-MR2 (standard stuff I know) but with Resistance at [15.28/MPP/S-R from Sept’17 low/38.2 fib level from Dec. high & Low] and if it gets through that lot I would expect further resistance @ [MM3/previous support of Oct. low/61.8 fib of Dec. H&L], if we get through that I would expect resistance @ MR1/Aug. high, if we get through those levels I would look for a double-top @ MR2/Nov. High, and then consider a carry-trade i.e. going short off the DT for a 600%+return P/A (50%/mnth). That would assume weakening EUR ( I am long EUR) and/or Strengthening ZAR. WOW! All that from a pair I don’t follow! Please don’t laugh too loudly!

  3. Charles Bidner says:

    Dalmas, re the GBPAUD trade, I see the pair has risen strongly off the MM2 but has now hit resistance @ 50% fib level/previous support from 15 Dec/55ema., I would think you may have your SL @ BE? so your risk may be off the table.

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