GBP/AUD Bullish to 1.85160
GBP/AUD daily resistance range broken simultaneously with the 200 EMA.
Looking for a pullback at 78.6% Fibonacci to the accumulation box with bullish candle reversal for confirmation to take GBP/AUD to target 1.
- Volume dropping with higher high and higher low candles
- Price holding above the 200 EMA
- Price holding above the 50 EMA
- RSI in overbought territory and possible divergence between peaks
Support – 1.83688, 1.83260, 50 EMA, 200 EMA
Resistance – 1.84500, 1.85160
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.83260
Supporting Entry – 1.83688
Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 1.82799 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 1.83260 – Target 1 1.85160 = 4x Reward to Risk
Supporting Entry 1.83688 – Target 1 1.85160 = 1.7 Reward to Risk