GBP AUD - Run with the bulls with the range break

18 de fev. de 2021

Hello traders and analysts,

A Note before reading - this is a forecast analysis - based upon our trading strategy.
Please do not take this as face value.

Master Key:
Blue = Monthly
Purple = weekly
Orange = Daily
Grey = 4hour
Pink = 1 hour

Here is a nice opportunity for buys which has happened this morning European session;
What happened? well from the low to the high, take your Fibonacci retracement tool and plot the 61.8% zone where we anticipated the buys.
GBP still has bullish potential here to climb into 1.8XX - this is still in play upon the previous few days passing.
The rejection happened nicely at 1.78 as expected. This pair has a nice liquidity zone so when entering be aware of a larger stop loss in comparison to other pairs. - [completed]

Here is the latest update of the previous analysis.

This update shows the beginning of the consolidation range:

Four hour chart range view


Price is currently trading a great 4 hour range, perfect to hedge short to protect long positions and buy in upon the lows [if this can be spotted].
What will happen next?
Well, price needs to break the 1.8030 zone, to push higher upon the bullish lower timeframe movements.


Imbalances original idea:

1. Zone 1: -
we will be looking at a test of the order block, movement away to keep shorts flowing to keep the imbalance moving towards the zone of a 1.72 redistribution, liquidity to show bears further short options before the lows.
From here we will expect a spring and a test of said springs.
A rejection will occur and then see accumulation phase of price hitting the target on the AUD USD with bullish Aussie.

2. Exactly the same but making further gains moving down to 1.67-1.60 which will be the development.
We volume will be a key indicator here to see the set up of the buy/sell swaps.

A large break of structure will occur - taking out the equal highs.
These are our Points of interests.

Now the trend is moving, looking to see a weak dollar maintained in 2021 so this will be great for the Aussie, affecting the GBP also which has also been seeing a volatile state - however Growing against JPY, USD, but against the CAD, AUD, NZD is now seeing large flows creating ranges to accumulate account growth depending on signs of movement.

Here is the bigger picture updated on the weekly time frame:


Take a look to see what AUD USD is signalling;

Here is the current situation: imbalances are clear

The Aussie has now passed 0.76 hurdle first.
The next Hurdle is 0.80 which is our target for the next 3-5 months.
However, with the year end - we will now look for two scenarios -

1. Price will revert back using the Fib retracement - looking at a new high low to form before a further bullish movement to the Aussie towards 0.80 - .
2. Price will continue to flow with minimal setbacks with a high probability of a weaker USD - due to the stimulus and presidential change, with new reforms to boost the economy again tumbling the Dollar.


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