If you’ve been trading GBPAUD the last few weeks you could have potentially made some decent profits swinging it to the downside, and here’s how we did it:
From the 24th – 27th August GA was stuck in consolidation. The way we identify consolidation is by spotting 2 significant highs that are holding as resistance and 2 significant lows that are holding as support. We then highlight the consolidation awaiting a breakout as displayed in the image below. ( 30 min timeframe )
As displayed in the above image, the advantage of spotting consolidation is when the breakout occurs. More often that not, once the breakout occurs the pair has chosen its direction. Your first entries can be taken on the retest of the consolidation.
Upon monitoring our first position, we noticed GBPAUD was trading in a descending channel. We plotted trendlines to map this out and then gained our second position on the third touch of the descending trendline displayed with a blue arrow on the image below.
We rode both these positions to their targets of 185 and 155 pips respectively. We did, however, gain one more position.
The final position was taken when we broke out of the descending channel and retested the bottom end of the channel at our phycological level of 1.87500 ( 1.86560 to be exact ). With our target being 1.85700 we gained another 180 pips. This is displayed in the image below with the most recent entry being displayed with a blue arrow.
At AspireFX we continue to preach sticking to a few pairs and mastering them. Once you’ve got the rhythm of a pair you start to understand it and place positions accordingly resulting in a much more profitable trading journey.
Since the price action displayed we have seen a 200 pip+ relief into the upside. Some key fundaments to look out for when it comes to GA next week are:
As always traders, exercise healthy risk management and we hope you have a fantastic trading week ahead. For more updates like the one above, subscribe to our blog for instant updates to your mail or join our Telegram Trading Floor via our website at http://www.aspirefx.co.za.