Daily Price Action
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GBPAUD Close to Confirming 500-Pip Opportunity

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We’ve been tracking this 1,440 pip range on GBPAUD since March 4th.

The area between 1.7280 support and 1.8720 resistance has kept the pair contained since August of last year.

Extensive ranges like this one can offer excellent opportunities.

But the question is always the same…

When is a good time to enter?

That’s a particularly tricky question with a cross like GBPAUD that can become quite volatile at turning points.

Look no further than the price action in March.

This is where channels can offer some clues. In fact, you could plan an entire trade around nothing more than a channel like the one below.

A daily close below channel support near 1.8450 would re-expose the range floor at 1.7280.

Remember that I use New-York-close Forex charts so that each 24-hour session closes at 5 pm EST. That gives me five equal daily candles each week.

These charts are required for trading price action from the daily and 4-hour time frames.

It’s that simple.

Now, there are no guarantees that GBPAUD will reach 1.7280 upon closing below channel support.

Keep in mind that the pair has been trending higher since October 2016.

That means this latest sideways movement since August of last year may only be a temporary pause in the uptrend.

However, if channel support does give out over the coming sessions, I suspect GBPAUD will at least pull back to 1.7930.

You can see how this level has served as a pivot for the pair since December 2017.

And while that certainly isn’t the same as a move to 1.7280, a pullback to 1.7930 still offers traders 500 pips of real estate.

That kind of potential is worth keeping an eye on.

In summary, a daily close below channel support near 1.8450 would set our sights on 1.7930; I won’t entertain a short until then.

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GBPAUD ascending channel on the daily time frame

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12 comments
Justin Bennett says

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Yusuf Ahmad says

Another good one

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    Justin Bennett says

    Cheers, Yusuf.

    Reply
Adebayo saheed says

Thanks

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    Justin Bennett says

    You’re welcome.

    Reply
Chris says

Thanks again Justin!

Reply
    Justin Bennett says

    My pleasure, Chris.

    Reply
Fabio says

I have a eye on this pair. It is making similar bullish/bear moves. Bull moves extend to Fibonacci’s 1.27 extension of prior bull move.

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Uzoma Nnamdi says

Thank you sir. Sir, do you have anything to say about EURAUD, I’m short on that pair

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    Justin Bennett says

    I might post something tomorrow. We’ll see.

    Reply
Hernando A Hincapie says

Good afternoon, if the channel is broken by 1.845 it would be expected to go down in the next few days, I also see that if this does not happen, it could continue upwards and return to the resistance in the 1,88500 area. with a power also of about 300 Pips. I’m right or wrong, thank you

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    Justin Bennett says

    Hi Hernando, anything can happen. But if the last six months are any indication, a close below channel support would expose the 1.7930 area. For now, it’s a waiting game.

    Reply
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