GBP/AUD trading strategy - Buy/sell asset: Buy GBP/AUD
- Entry price: 1.92932
- Stop loss: 1.92350
- Leverage: 1x
- Take profit 1: 1.93700
- Take profit 2: 1.94500
- Take profit 3: 1.95280
- Timeframe: 1-2 weeks
- Maximum profit: 1.22%
- Maximum loss: 0.30%
The price of GBP/AUD was retracing from the 1.95280 resistance level. The price has been in a bullish trend for the last couple of months and it is likely to continue the rally after retesting the 1.92932 support level.
The price was able to break the 1.92932 key resistance zone on Monday and the same level will now act as a major support on retracement. The 1.92932 level also lies between the 0.786 and 0.618 Fibonacci levels.
I am considering the 1.92932 support level(previously resistance) for long entry and my target for this trade would be the 1.95280 supply level.
GBP/AUD fundamental analysisFundamentally, the price of GBP/AUD is likely to remain stable and follow the price action as there are fewer fundamental events that can have a significant impact on the price of GBP/AUD.
However, the high-impact news on the USD can influence the price of GBP/AUD as the Australian dollar usually moves against the US dollar. So, if the USD is going up the Australian dollar drops and the price of GBP/AUD goes up and vice versa.
British pound to Australian dollar trade idea takeaways- GBP/AUD recently broke a major resistance zone of 1.92932.
- The price of GBP/AUD is likely to reach the 1.95280 daily resistance level in the coming days.
- Multiple take-profit levels have been added to secure profit along the way.
- The risk-to-reward ratio on this trade is 1:4.
- The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
- Good luck!
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