Description
The GBPAUD cross in its 2-hour chart exposes an upward advance after the price developed a new lower low in the Tuesday 23rd trading session. The price found an intraday bottom at 1.79997 from where the price recovered erasing the Tuesday losses climbing until level 1.80910.
The price action suggests the structure as a bearish failure, which is confirmed by the bullish breakout observed in the RSI oscillator. On the other hand, the RSI illustrates a sequence on lower highs while the price developed a lower lows series, which corresponds to a bullish divergence. This divergence leads us to conclude that the downtrend developed by the GBPAUD is in an exhaustion stage, and a bullish reversal is imminent.
The breakout over the recent swing high at 1.8066 makes us foresee further upsides until the zone of 1.8236. The invalidation level of our bullish scenario locates at 1.8015.
Chart
Trading Plan Summary
- Entry Level: 1.8084
- Protective Stop: 1.8024
- Profit Target: 1.8234
- Risk/Reward Ratio: 2.5
- Position Size: 0.01 lot per $1,000 in trading account.
