On 2014-SEP-17, GBPAUD broke above the downward trend line from the 2014-JAN-24 high through the 2014-JUL-16 minor high. It broke above the 200-day moving average on the very next day and went on to make a new 100-day high in just one more trading session. This 100-day high was also the high of the last minor high in that downward trend confirming the end of that trend.
Accordingly, I took a long position in this pair at 1.8493 with a stop just below the 3-day low.
Thoughts?
This trade helps me a lot on the growth of my account. But in current situation, I prefer to stay out after my last TP point which is near or even it hit my stop loss. Maybe wait for some correction and wait for another entry.
Hello Arbitrager…
Interesting…
I would trust this trade because the Gbp has moved up against the Nzd and the Chf, and against the Eur,
so it may well find the momentum against the Aud;
looking on this FXTop historic chart, you can see Gbp/Aud in the last FORTY (40) years…
On it, I marked with a blue line the connection between the level that was a strong demand (support) zone
in 1996 and that same level which, eighteen years later, has come back as supply (resistance); as the
pair has bounced off it, we would need to break it again before truly seeing this pair retracing former
highs…
However, these are big charts, so you may still get a few hundred pips out of a long, even if it did
come back upon hitting that historic level.
Good luck.
With the break of the 3-day low I got out at break-even (3.3 pips) to wait for another break of the 3-day high. Or, if it breaks a new 10-day low below the 200-day moving average, I will short it at the first break below the low of that first session. I will certainly post an update when whichever one goes down.
