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
Average True Range
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 mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars Tuesday – Thursday this week on DailyFX Plus (Exclusive of Live Clients) at 15:30 GMT (11:30ET)
Interested in learning about Fibonacci? Watch this Video
Source: Daily fx
