A bearish pattern is currently forming on the GBP/AUD 1hr
Chart. There are several reasons that we are looking for resistance at
1.5985. The entry is located near the convergence of the
following levels: 50% of 01, 127.2% of AB, and 1A=BC. Therefore, our
entry would also fulfill the criteria needed
for a bearish Gartley
pattern. The trade is invalidated
if
the pair drops to 1.5816 before
reaching the entry.
The pattern suggests selling the GBP/AUD if it rallies to 1.5985 (Point D).
Point D is located at the convergence of the following points:
50% Fibonacci retracement of 01.
127.2% Fibonacci extension of AB.
ABC pattern.
To recap, the pattern suggests selling the GBP/AUD at 1.5985 with our stop
placed at 1.6015. Our initial profit target is 1.5938 (38.2% of BC).
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| 1hr Chart - Sell GBP/AUD at 1.5985. |
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