GBP/AUD (Long)

Oct 24, 2018

On the daily chart price action has rejected off a key support and resistance level which so happens to be the 1.82000 handle. Price has reverted back to its 50 EMA, but yet to make contact and reject to indicate potential dynamic support. The RSI on the daily chart is indicating that momentum is slowing down which could suggest that price action could top out at the 1.84000 region (if price action is to continue to the upside), or continue with it downwards movement leading of its most recent corrective wave. The four hourly chart is showing that price action has formed two potential bullish channels. The channel consisting of the black trend lines is a longer term channel, whilst the blue dashed channel is a more short term channel. The two key regions to look out for on the four hourly chart is the 1.81200 region and the 1.83400 region. Price action is currently rejecting off of the intercept point between the short term channel trend line and the 1,82000 level. Due to price action showing a fairly aggressive deviation from its 50 EMA on the four hourly chart and also a slight deviation on the hourly as well, I feel that there is a potential for a retrace to the upside back to this mean as it rejects of the 1.82000 level. This trade would be quite an aggressive trade as the pull back would be very short and relatively quick.