Want more price action setups? Join our Exclusive Member’s Community
We start today’s weekly Forex forecast with GBPAUD, a pair that saw impressive gains last week, rallying almost 600 pips from the low to the high. That said, the pair did lose some steam going into the weekend, losing 120 pips from Friday’s high.
I’m still bullish on this pair given that it’s still trending within the ascending channel that is best seen on the daily chart. However I’d like to see a healthy pullback to support before this trend continues, otherwise it stands a good chance of tiring before reaching channel resistance at 1.9685.
We have the RBA rate statement on Monday which will significantly impact all Aussie dollar pairs. Therefore I don’t recommend trading this pair until this event risk is behind us and the dust has settled.
This weekend marked the close of another trading month, which turned out to be quite impressive for GBPAUD. The bullish monthly pin bar in the chart below not only gives us an indication of where this pair might be headed, but also provides us with an area to look for potential long opportunities.
GBPAUD monthly chart:
The horizontal line in the chart above marks the 50% retracement of the monthly pin bar. This also lines up well with daily support around 1.8930.
Summary: Watch for bullish price action between 1.8930 and 1.9077. Key resistance comes in at 1.9685.