The bias is bearish while the price remains below 2.0080. Any sort of pullback up could provide a trade opportunity.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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Trade Idea Details:
Key support levels: 1.9310, 1.9250
Key resistance levels: 2.0080, 2.0200
On a monthly chart, we can see a clear rejection of the 61.8% Fibonacci retracement level at 1.9850.
This indicates a level of a very strong resistance, which can potentially result in a correction down or even a trend reversal.
On the 1h and 4h charts, price is undergoing a consolidation phase under strong volatility, which also could mean a potential weakness in the medium and long term.
At the same time, it is worth noting that the pair is right at the top of the ascending channel. The recent breakout of the descending channel could have been the trigger point of the selloff, therefore presenting a selling opportunity.
GPBAUD Monthly Chart
GPBAUD Weekly Chart
GPBAUD 1H Chart
GPBAUD 15M Chart
Potential Trade Idea: As long as pair is below the 2.0080, bears are likely to dominate. The breakout point of the ascending channel could be used for entry, as well as the 200 Exponential Moving Average on the 15m chart. This would make 1.9900 a good selling area. The potential target zone is at 1.9250 – 1.9300 which is confirmed by 161.8% Fibonacci retracement level.
- Potential StopLoss at 2.010
- Potential TakeProfit at 1.9310
EUR/GBP Buy Trade Idea – March 9th 2020