GBPAUD analysis and tutorial: current signals
GBPAUD monthly chart indicates an uptrend started since 2013.
First scenario
In first scenario, as shown on the chart, after entering the support area and touching the trend line, price action will bounce off and continues the monthly uptrend.
In this case we can go short similar to the Risk/Reward short tool used on the chart.
Second scenario
In second scenario, price will pierce through the bottommost trend line and hit the bottom horizontal line. Considering the pattern formed in current down trend, which is a monthly Three Black Crows engulfing the whole previous uptrend this scenario is quite possible unless a major news change the direction.
In this case, after price is settled under the trend line we'll go short.
First scenario
In first scenario, as shown on the chart, after entering the support area and touching the trend line, price action will bounce off and continues the monthly uptrend.
In this case we can go short similar to the Risk/Reward short tool used on the chart.
Second scenario
In second scenario, price will pierce through the bottommost trend line and hit the bottom horizontal line. Considering the pattern formed in current down trend, which is a monthly Three Black Crows engulfing the whole previous uptrend this scenario is quite possible unless a major news change the direction.
In this case, after price is settled under the trend line we'll go short.