GBPAUD is showing signs of breaking down after Friday’s failure at 2.0470.
Watch today’s video to see how I’m trading it.
Although not as popular as the major currency pairs, GBPAUD occasionally presents some incredible opportunities.
Last week, I shared a EURNZD short with a 1.9140 entry.
That trade was announced to VIP Discord members in real time, and I’m still in it as of this writing.
While GBPAUD hasn’t shown as much potential as EURNZD, it does offer a similar setup.
The pair broke above its 2024 channel resistance last week before failing on Friday.
As is often the case, breakouts above ascending levels are more likely to fail, which is exactly what happened with GBPAUD.
The sustained break back below 2.0470 confirms the buy-side fakeout and flips the area back to resistance.
A fakeout, or failed breakout, is my favorite way to trade forex due to the high probability of these setups.
Of course, that doesn’t mean it’s a sure thing—there are no guarantees in trading.
But as long as GBPAUD trades below 2.0470 on the high time frames, I like the idea of a move toward recent 2.0300 lows and potentially lower toward 2.0200 and 2.0000.
The upcoming employment figures out of Australia will shake things up for GBPAUD, so traders should keep that in mind when trading the pair.
