GBPAUD Update, Trades within the Downward Price Channel

10 February, 2016

GBPAUD Update, Trades within the Downward Price Channel

GBPAUD, Daily

UK data isn’t likely to change the new dovish bias of the BoE. The GBP has moved up in recent days as concerns over a Brexit have been reduced for now. However, the GBP should get a boost of volatility as we get closer to the U.K. and the E.U. summit next week.

The main risk for the AUD is a weakening China and the fact that future intervention from the RBA to devalue the AUD is still in the cards.

Technically, the GBPAUD trades systematically within the multi month downward sloping price channel; current price also trades below its long term moving average with no clear signs of a price reversal. My conclusion for GBPAUD traders is to trade within the downward direction of the channel. Entering short positions near the top of the channel line for a medium term target around the June 2015 lows ( 1.9660’s); provided price can break below the January lows (1.9980). However, traders should remain on alert to abort short positions upon any potential upward channel line price penetration.

Feb 10 GBPAUD SRL V1


Source link  
Stock market recovery continued

Still, U.K. and U.S. futures are also moving higher, indicating that abating fears over North Korea are keeping markets underpinned, while earnings optimism...

NZDJPY beneficiary of Asian session

With a the NZD is overvalued on one side and Sabre rattling between North Korea and the US continuing overnight there was really only...

Euro above 1.18 against the dollar

Asian stock markets moved higher, with a rally in banks underpinned by earnings reports and helping to offset pressure on exporters and automakers...


Gold support at 1258 but rolled over 15m

Gold remains bullish having posted at high over 1265 yesterday. My bias remains long and I entered again at 1258 last night. However, the intraday...

FOMC held rates steady

The Fed’s reluctance to commit to a time for QT beyond “relatively soon” and the fact that the Fed appeared to be moderately more concerned...

FOMC decision to outline its balance

U.S. markets will have a lot on their plates this week as they continue to assess the June jobs data, global developments in the aftermath of the G20 meeting...


Dollar majors have been challenged

EURUSD has settled around 1.1350, modestly above the five-session low posted yesterday at 1.1336. USDJPY has been trading on either side of 113.00...

Yen crosses keep ascending

The yen is coming under pressure across-the-board, with the 0% yielding yen converting back to the funding currency of choice in the forex market...

Oil prices hold above USD 44 per barrel

Asian stock markets mostly headed south, with Australia’s ASX a notable exception. Elsewhere markets followed Wall Street lower...

  


Share: