Reading this chart is my strategy sensible?

Hi there,

I’m still relatively new to all of this but wanted to ask someone to advise me as to whether my interpretation of the following chart is correct:

https://www.tradingview.com/e/aOvBpAoJ/

Looking at GBPAUD daily it looks to me like there is a level of support/resistance around 1.825 and that it could climb from there. Plus the last two times it has been around this level there has been a doji candle followed by a rise, which leads me to believe that it will either bounce off of support or range up to about 1.855. Generally the pair have been in an upward trend for a number of months so this to me looks like a pullback.

Cheers Andi

Well, price has only bounced off of it twice, so it’s still a weak support. I wouldn’t be surprised if it breaks, but don’t expect a particularly strong downward movement if it does, unless fundamentals have drastically changed.

Have you checked the fundamentals of the pair? Any indications that GBP may be weakening, or that AUD is growing stronger? If not, then it’s probably just consolidation, in which case the price will likely range for a while and eventually break out to the upside.

in my opinion this is head and shoulders, if it breaks 1.8280, it will go down to 1.790

Why do you make your self in difficulty and problems for learning the technical strategy…
It will make you more confused. Just use EA and manage it to gain consistent profit in forex…
You have to know that, forex is unpredictable. OR, just invest in PAMM account. Example in Liteforex broker, the famous broker in asia…

Simply put, give a man a fish and he will eat for a day, teach him how to fish and he will eat for a lifetime! Best way to be a successful trader is to learn how the market performs not to rely on the programming skills of someone else. The most powerful thing we possess is our own brain to make decisions, hence why I want to understand how the market moves not just to be told.

Different traders determine support and resistance differently. Some
traders take the shadows into account, while others only consider the
body. There’s no right or wrong in this as it is a subjective matter.

The support and resistance levels that you have identified are
acceptable and I agree with you that the pair has been in an uptrend
in which the current price is making a retracement before continuing
its way up.

However, do take note that if the price drops below around 1.7890 and
making lower lows, there is a possibility that the uptrend has ceased.

Yes it is.

Dont fight the trend. Just ride along guys. makes the bankroll grow quickly and painless.
Happy trading