For more than two weeks we have been looking for this opportunity on the GBP/AUD currency pair since it reached our entry zone at 1.6140 which we are targeting for more than 500 pips as profit if we see more confirmation signals about our entry positions. Let’s look at the daily chart.
The pair is trading now around 1.6190-40 levels which are a key support area because we have had a trend line since October 2016 and we see five bottoms were based on it. Also, we have a demand area from last month at 1.6020-1.6100, so we have a very strong area to buy the pair here.
The MACD indicator is starting to form a buy signal - we can act on it soon, maybe tomorrow or on Thursday, if we see new highs for the pair. The RSI is still at 37 level, so we have to be patient.
The Next Few Days
According to this analysis of the daily chart, we can buy the pair at the demand zone around 1.6180-1.6140 but we have to wait for the buy sign from the MACD indicator and a bullish price action candle, keeping our first target at 1.6530 at the SMA level and the second at 1.6700 at the downside trend line. However, if the pair breaks the demand zone we can sell it and keep our target at 1.5790.
We have to watch out for upcoming hot news like GDP tomorrow from Australia and the Manufacturing, Construction and services PMI from the UK this week.
