GBPAUD: Fresh longs need confirmation

The GBPAUD pair has been able to move bullishly during the previous period and it is currently re-experiencing the key resistance level of 2.0000 as seen on the provided daily graph.

GBPAUD-01-06-2015-FXCOMMENT

Breaching through B point is classified as a proof of forming a harmonic pattern, which could be a Crab pattern since the correction of XA leg is closer to 61.8% than 76.4% Fibonacci retracement.

Being carried above Ribbons lines is a good technical catalyst, but Aroon and Know Sure Thing are still offering shaky bullish signs, but with a breakout above 2.0000 psychological, they will be stronger.

It is worth mentioning that, the GBPAUD pair is a quick mover and thereby, a breakout with at least 50 pips above 2.0000 is required to confirm taking this tough resistance and to confirm drawing the Crab pattern.

Placing buy stop order at 2.0050 could be a good decision to avoid double topping, while the completion point of our caught Fibonacci rhythmic resides in the 2.0750 boundaries.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

You have to be logged in to comment.