Categories
Forex Signals

GBPAUD Activates a Double Bottom Pattern

Description

The GBPAUD cross in its 4-hour chart illustrates the double bottom pattern’s throwback, which activated once the price action surpassed the 1.8090 level.

The chartist formation characterized by having two valleys and one peak found its first valley at 1.7868 on June 30th, where developed a bounce that carried it until 1.8090 on July 02nd. The following valley that found support at 1.7882 created a bearish failure, from where the price action started to develop a bullish move. This intraday rally drove GBPAUD to reach a new short-term higher high, reflecting its movement on the RSI oscillator, which surpassed the level-70, giving an additional signal of potential recovery.

600x600

The current retracement, which corresponds to a throwback, lead us to conclude that the price action could develop a new rally with a potential profit target located at 1.8345. 

Our invalidation level locates at 1.7981, which corresponds to 50% of the bottom formation range. 

Chart

Trading Plan Summary

  • Entry Level: 1.8096
  • Protective Stop: 1.7981
  • Profit Target: 1.8345
  • Risk/Reward Ratio: 1.9
  • Position Size: 0.01 lot per $1,000 in trading account.

Check out the latest trading signals on the Forex Academy App for your mobile phone from the Android and iOS App Store.

970x250

By Eduardo Vargas

Eduardo Vargas is a technical analyst and independent trader based in Buenos Aires, Argentina. He is an Industrial Engineer and holds a Master in Finance degree. In 2008 began to trade Chilean stocks listed on IPSA. From 2013 started to trade CFDs on Forex, Commodities, Indices and ETFs markets. He analyses different markets combining the Elliott Wave analysis with Fibonacci tools. He provides a market mid-long-term vision.

One reply on “GBPAUD Activates a Double Bottom Pattern”

what went wrong in this technical analysis of double bottom.
did not work?.. 2nd biggest forex academy big pip loss. (-116.3)

Leave a Reply

Your email address will not be published. Required fields are marked *