GBPAUD – BUY STOP – 13th November 2020

GBPAUD – BUY STOP – 13th November 2020 (Closed)

Good morning team,

Updated positions:

NZDUSD: SL moved to the open price at 0.6886

NZDJPY: SL moved to open price at 72.20

Silver is still open but -5 pips – We will continue to hold

SP500 is open at roughly break-even, once the market hits 3520 we will move our SL to the open price.

This morning we are taking a look at the GBPAUD. Looking through cross pairs like EURAUD, EURNZD, GBPAUD and GBPNZD it appears as though they are setting up for a bullish move higher. We are turning our attention to the GBPAUD as the technicals are showing a potential bull flag formation.

GBPAUD – Daily Charts

There are a couple of things to take note of here. Firstly, the buying volume has reached extreme levels over the past couple of days. The GBPAUD has broken back into the rising channel trend line and is using that level as support. The RSI is signalling a bullish divergence on the daily time frame also.

GBPAUD 4 Hour Charts

The market appears to have completed an A-B-C correction and may create another bullish 5 wave sequence higher. We will look to buy the breakout from the bull flag formation.

Trade Setup: BUY STOP – Entry price: 1.8185, stop loss 1.8100 and take profit left open to run but we are targeting the 1.8400 region. 

Stop loss: 85 pips

Take profit: 215 pips

Trade Setup
BUY STOP

Entry
1.8185

Take Profit
1.8400 +

Stop Loss
1.8100