GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920
Talking Points
- GBPAUD eyes key near-term resistance
- Weekly opening range taking shape just below
- Major event risk on tap from Australia & UK
GBPAUD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- GBPAUD testing key resistance range- January 24th TL / Fibonacci confluence 1.8022/50
- Breach targets resistance objectives at 1.8184 & 1.8280/90–bearish invalidation
- Support at 1.7830, 1.7803, 1.7756 & 1.7663
- Daily RSI support/resistance triggers pending
- Event Risk Ahead: RBA minutes tonight UK CPI Tomorrow, Retail Sales on Wednesday and 1Q GDP on Thursday
GBPAUD Scalp Chart
Notes: The GBPAUD is approaching a major inflection point with the weekly opening range taking shape just below a key Fibonacci resistance range between 1.8034/43. We’ll utilize this region as our weekly opening range high with a breach/close above targeting subsequent topside objectives. Not that last week’s rebound took place at the April 10th close price (the monthly low was made that day- bullish).
The pair broke above near-term trendline resistance dating back to the monthly high last night and a pullback to test this level as support may in the cards before the next leg. Bottom line: long-scalps are favored while above 1.7920 with a breach above 1.8034/43 offering further conviction on our near-term directional bias.
Use caution heading into the Asia/Pacific session tonight with the release of the RBA minutes due at 9:30PM (ET) and the UK Consumer Price Index (CPI) on tap tomorrow morning. Follow the progress of this trade setup and more throughout the trading week with DailyFX on Demand.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Key Threshold Grid
|
Entry/Exit Targets |
Timeframe |
Level |
Significance |
|
Bearish Invalidation |
Daily / 30min |
1.8034/43 |
61.8% & 38.2% Ext(s) |
|
Break Target 1 |
30min |
1.8074 |
Last Week’s High |
|
Break Target 2 |
30min |
1.8105/17 |
61.8% Retracement / 100% Ext |
|
Break Target 3 |
Daily / 30min |
1.8176/84 |
61.8% Fib Ext / May 2nd Close |
|
Break Target 4 |
30min |
1.8220 |
Soft Resistance / Pivot |
|
Break Target 5 |
Daily / 30min |
1.8280/90 |
38.2% & 50% Retracements / May ORH |
|
Bullish Invalidation |
30min |
1.7921 |
Weekly ORL / Pivot |
|
Break Target 1 |
30min |
1.7870 |
Soft Support / Pivot |
|
Break Target 2 |
Daily / 30min |
1.7830 |
May ORL |
|
Break Target 3 |
Daily |
1.7803 |
200DMA |
|
Break Target 4 |
Daily / 30min |
1.7737/56 |
April Low / 100% Ext |
|
Break Target 5 |
Daily |
1.7663 |
50% Retracement |
|
Daily (20) |
114 |
Profit Targets 27-29pips |
|
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
- USDOLLAR, Gold Setups Target Key Resistance- Breakouts Pending
- GBPUSD Risks Major Support Break Ahead of Key UK/US Data- 1.6820 Key
- NZDJPY Monthly Opening Range Trade- Bearish Sub 89.50
- EURAUD Scalp Setup Favors Selling Rallies Sub-1.5030
- EURJPY Scalps Target Critical Support at 141
---Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
To contact Michael email [email protected] or Click Here to be added to his email distribution list
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