AUDUSD Stalls : GBP Bears Take Over
Thurs 7th September 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- GBPCAD (Primary Focus Pair)
- AUDUSD (Covered In Video)
- EURCAD (Covered In Video)
Our Interest (pending order)/Open Interest (live position)
| N/A | Price | Pips +/- | R/R (Max/Min) |
|---|---|---|---|
| Entry Price | |||
| Stop Loss (Min) | |||
| Stop Loss (Max) | |||
| Profit 1 | |||
| Profit 2 |
Risk warning: Trading carries a high degree of risk. Read more here.
Our AUDUSD trade has stalled, we have closed this position for a small loss of +5 pips.
The conditions surrounding the trade have changed, so we would rather exit here and wait for momentum to be back on our side for another opportunity.
That being said GBP has turned bearish.
Yesterday it was on our live proprietary forex strength and weakness tables as a strong currency.
This has now reversed due to the Bank of England Governor Bailey suggesting that rates are at there peak now.
Since then, GBP has jumped to the weak side of the day traders table as the weakest currency.
The USD is the strongest currency (S1) and CAD is the second strongest currency (S2) on both tables.
Meaning we can look for GBPUSD and GBPCAD to trade lower.
GBPCAD in particular has piqued our interest as it has traded through the daily time frame (D1) lows of 1.7000, which formed from the lows on 28th August and 1st September.
Looking at the stochastic indicator on the left hand chart (daily chart) we can see it is pointing bearish.
The next support level is 1.6900, which could be targets for sellers.
On the hourly time frame (H1) chart on the left hand side we can see price making lower lows and lower highs.
If price can retrace on the hourly (H1) time frame we can retest resistance of 1.7100 or 1.7050 prior H1 lows we can look for opportunities to sell around here.
Also our stochastic oscillator on the Hourly (H1) time frame turned bearish after dropping below the 80 line.
All these confluences add up to a short trading idea, this could see prices continue lower.
The target for this trade is the low found on the daily (D1) time frame of 3rd November 2022 at 0.6275.
An earlier target could be the psychological level of 0.6300.
Technical Observations:
- GBP is W1 and CAD is S2 on the day traders table.
- GBPCAD has traded through key daily (D1) support of 1.7100.
- Sellers could target 1.6900 daily (D1) time frame support.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
