Trading beneath the 50-day moving average and support at 2.0800, and with momentum signals shifting from neutral to bearish, directional risks for GBP/AUD appear to be tilting lower.
Those considering shorts could look to initiate positions beneath 2.0800, with a stop placed above it or the 50-day moving average for protection. Bids may emerge around 2.0675, but for the trade to stack up from a risk-reward perspective, support at 2.0500 screens as the more appealing target.
For those eyeing the setup, keep in mind that UK labour market data is about to drop, posing a potential volatility event. The preference would be to wait and see how the pair trades following the release rather than acting preemptively. A move back towards 2.0800 that stalls would improve the appeal of the trade.
Good luck!
DS
Those considering shorts could look to initiate positions beneath 2.0800, with a stop placed above it or the 50-day moving average for protection. Bids may emerge around 2.0675, but for the trade to stack up from a risk-reward perspective, support at 2.0500 screens as the more appealing target.
For those eyeing the setup, keep in mind that UK labour market data is about to drop, posing a potential volatility event. The preference would be to wait and see how the pair trades following the release rather than acting preemptively. A move back towards 2.0800 that stalls would improve the appeal of the trade.
Good luck!
DS
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.