GBP/AUD 4H Timeframe Analysis

GBP/AUD 4H Timeframe Analysis

Trend Analysis:
In the 4H timeframe, the GBP/AUD pair is currently in an uptrend, characterized by the formation of higher highs and higher lows. Recently, an inverted hammer doji formed at the 2.00500 level, followed by a bearish candle, indicating a potential price reversal. This reversal led to a break of a minor key support level, which has now turned into minor key resistance. The price has retraced and is now approaching this minor key resistance again, suggesting a potential accumulation of sell orders.

Price Action Expectation:
We anticipate that if the price breaks above the minor key resistance, it may trigger a manipulation phase that could liquidate many seller stop-loss positions placed above this level. Our primary objective is to wait for the price to break below the minor key resistance before entering a sell position.

Trade Setup:
Trade Type: Sell Stop
Entry Price: 1.98440 (just below the minor key resistance)
Stop Loss: 1.98860 (positioned above the liquidity zone to protect against adverse movements)
Take Profit: 1.97170 (targeting the next key support level)
Fundamental Outlook:

Impact on GBP/AUD:
Key economic indicators from the UK and Australia will significantly influence the GBP/AUD pair. Factors such as interest rate decisions, employment data, and inflation rates can affect the strength of both currencies.

Positive Economic Data from the UK:
If the UK releases stronger-than-expected economic data, it may bolster the GBP, potentially leading to a failure to break below the minor key resistance and resulting in bullish momentum.

Negative Economic Data from Australia:
Conversely, if Australian economic indicators show weakness, it could lead to increased selling pressure on the AUD, supporting our bearish outlook for GBP/AUD.