The British pound bounced sharply against the Aussie Dollar recently, but it looks the GBPAUD pair may be completing a ride soon. There is a bearish trend line formed on the 4-hours chart, which may act as a barrier for buyers moving ahead.
So, we can look for a sell opportunity moving ahead, may be around a bit higher levels or in the short term on the 5-min chart. Let us analyze how we can enter a sell trade.
Technical Analysis
H4– GBPAUD chart highlighting trend line and resistance area and a possible sell scenario.
Sell Entry:
M5 – If the GBPAUD pair forms a convergence on the 5-min or 15-min chart, trades higher in two waves, forms a trend line and breaks it, then we may look to enter a sell trade as highlighted in the chart.
Target 1: 2.0420
Target 2: 2.0380
Stop Loss: Above 2.0560
Video Explanation:
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Yours,
Vladimir
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