Hi Traders! GBPAUD bearish convergence provides sell opportunity for us. A detailed analysis of this sell setup is as follows:
GBPAUD D1 Chart:
On the daily chart we had a bearish divergence, then the price moved lower and created lower lows thus forming a bearish convergence. As per the book scenario currently it looks like a pullback is happening. We may now look for evidences of bearish pressure on lower timeframes in order to join the bears.
GBPAUD H4 Chart:
On the H4 chart the price has created a double wave up. The price which was moving higher has reached the critical zone and is currently moving lower. We also have a good uptrend line that has formed, if the price breaks and holds below this uptrend line, we may then look for pullbacks and sells with bearish evidences.
Alternatively if the price bounces from the uptrend line, then 100 and 161.8 fibo levels are the next zones to watch for bearish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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