How to trade the GBPAUD & GBPJPY
Thank you for following my blogs and trade analysis. I am purely trading what the charts are telling me, there is no point in speculating and hoping for a trade to happen. Our job as traders is to react to what the market presents to us according to our set rules & trade plans. Agree ?!?!
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Now lets take a look at some of the charts this weekend. This is how I would look to trade the GBPAUD. I see a gradual uptrend on the weekly chart and we could be hitting some resistance levels this current moment.
Zooming into the lower Time Frame H4, there is a Bearish bat pattern presenting itself.Completion around the 1.7949 levels. I would love for the price to move up one last time to test the highs again, exhaust all the bulls before the bears comes into the market.
The potential short from these levels with targets at the bottom of the weekly channel will present a very good risk to reward trade. Let's monitor this closely this coming week.
We then have a look at GBPJPY. The Daily chart shows us two Shark patterns forming. The smaller Shark (in Maroon) has completed, however, there is a bigger Shark (in Green) completing lower.
How would we know which Shark pattern is more significant? The answer to this is to find more reasons to take the trade at the PRZ. Looking at the Weekly chart, I see the lower channel coincides with the smaller Shark. Hence I believe, we could see a bounce off the smaller Shark. Again will monitor how the market opens next week.
Cautious note: The Daily downtrend momentum is strong. MACD starting to open up and pointing downwards. Hence if we do get into a long trade, just be ready to take quick profits.
Trade well and trade safe everyone. Remember, drop me a PM if you want to up your trading knowledge. Let's take it to the next level.