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Technical Play of the Week: The GBP/AUD is Back!

Last updated 3/12/2009 1:07 PM EST (GMT -5) 0 Comments - Add your comment

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FX360 Technical Analyst Staff

Technical Analyst, GFT

The GBP/AUD was the feature of several technical articles a couple weeks back, and now presents an excellent buying opportunity off multiple bullish pattern convergence.

Unfortunately, we're a bit late on the entry as both at bullish Gartley pattern (see daily chart) and bullish butterfly pattern (see 4hr chart) have already completed near 2.1100 establishing this as a critical level of support. However, prices are currently hovering around 2.1330 which still makes for a solid risk-to-reward ratio.

As a result we've entered a long position at 2.1327. Stops have been placed just below pattern completion at 2.1095, and targets currently sit just below 38.2% and 61.8% of the daily CD leg at 2.1675 and 2.2035, respectively. Intraday charts indicate that there may be a bit of room down with a current bullish double-bottom Gartley pattern projected to complete at 2.1100, so if this level fails a potentially strong bearish continuation is in progress down to as far as 2.0200.

Daily Chart - Bullish Gartley pattern has completed	4hr Chart - Bullish butterfly pattern also complete right at the daily Gartley pattern

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