GBPAUD has formed a series of bear price pattern on both monthly, weekly, and daily time frames. This suggest that GBPAUD will probably move lower over time in the coming months , weeks and days.
On the daily chart, we have an ascending broadening pattern which depicts a clear bear price pattern. We recently had a breakout and retest confirming the bear price pattern. Timing is very key in order to have a good risk to reward ration.
We therefore want to sneak in a sell stop order below the low of last week trading range @ 1.89600 and should the market decide to plunge we will be in the trade.
On the other hand should there be a retracement, we will be looking for price action signal to go short with a favourable risk to reward ratio.
Our target is 1.8500