GBP/AUD technical analysis: anticipating a short opportunity at 1.90582 resistance

January 05, 2024 11:05 PM AEDT | By Invezz

GBP/AUD technical analysis: anticipating a short opportunity at 1.90582 resistance — Image source: Invezz

GBP/AUD trading opportunity

Buy/sell asset: Sell GBP/AUD
Entry price: 1.90582
Stop loss: 1.92034
Leverage: 1x
Take profit 1: 1.89500
Take profit 2: 1.87700
Take profit 3: 1.85890
Timeframe: 1-2 weeks
Maximum profit: 2.46%
Maximum loss: 0.7%

GBP/AUD chart and technical analysis

GBP/AUD has been in a bearish trend since last August and the price has made lower lows since then. Currently, the price is making a correction after dropping to the 1.85893 level. The price is likely to retest the 1.90582 resistance level before dropping further.

The 1.90582 is a major resistance level that has also proved strong support in the past. I am expecting the price will continue its bearish momentum after retesting this level.

I am considering the 1.90582 resistance level for short entry and my target for this trade is the 1.85890 support level. There is also a bearish order block and 0.38 Fibonacci level around the same level.

GBP/AUD fundamental analysis

The Non-farming payroll (NFP) data will be published on the US dollar today, if the data turns out positive the price of GBP/AUD will go up and when the USD strengthens the Australian dollar gets weaker. Conversely, if the data turns out negative for the US dollar the price of GBP/AUD will drop.

However, the price of GBP/AUD is likely to remain stable in the coming week as there are no major fundamental events that could impact the price of GBP/AUD substantially.

Great Britain pound to Australian dollar trade idea takeaways

The price of GBP/AUD is likely to drop further after retesting the 1.90528 resistance level.
The price is likely to drop to the 1.85890 support 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 1:3.2.
The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
Good luck!

The post GBP/AUD technical analysis: anticipating a short opportunity at 1.90582 resistance appeared first on Invezz

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