Trading Signals: Mixed Entry in GBPAUD

We have been able to trace what triggered the extraordinary JPY weakness in the Forex market. The Bank of Japan (BOJ) initiated an operation as part of it prior monetary measures to curb the yield curve. The move was seen as an attempt to weaken the Japanese yen, which triggered a rally in most JPY pairs and crosses. Yellen’s remarks on a potential rate hike in December strengthened the US Dollar against a basket of currencies, which promoted further gains in USDJPY. As we have stated on several occasions there are no indications for an imminent hike by the Fed in December at the time of this writing. It is too early to consider a trade in USD pairs and crosses until we near the end of the month so we may have a greater clarity on the upcoming trend for the Us Dollar.

GBPAUD Weekly Chart

Please click on the chart to enlarge:

GBPAUD Weekly Chart 20/11/16

GBPAUD Weekly Chart 20/11/16

The recent gains may have provided a dip on the weekly chart for initiating a short trade in the market. Based on our analysis this may not be the cleanest entry. We can estimate the potential drawdown and as this is a weekly entry we may incur a kick of +100 pips (approx.). The weakness must stem from GBP initially rather than AUD. We can use an entry order but it greatly depends on the opening price of GBPAUD. The entry may also be supported via intraday time frames, which if it was not the case we would refrained from considering a trade in the cross. The key trend for numerous currency pairs is set for the monthly close. We may initiate the trades prior to the monthly close but it is too early initiating the signals today. One of the positive factors of GBPAUD is the positive interest at the rollover.

GBPAUD Trading Signal

GBPAUD short at market price (1.6837)
Take profit: 1.6020
Protective stop: 1.7050
Risk Ratio (RR): 1 : 4 (approx.)
Estimated duration: 21 days

22/11/16 UPDATE: GBPAUD is trading at 1.6777 at the time of this writing, we are closing 20% of the short trade at market price.

23/11/16 UPDATE: The main n driver for AUD aside iron ore prices is a group of traders that seem to have synchronized their trades and favored long AUD. We shouldn’t be deterred by the recent gains but we are closing 10% of the short trade at market price (1.6715) as a precaution. We do not have a sufficient distance from the market to shift the stop to the entry.

Please click on the chart to enlarge:

GBPAUD Weekly Chart 23/11/16

GBPAUD Weekly Chart 23/11/16

27/11/16 UPDATE: We are shifting GBPAUD protective stop to the entry. We will be relatively close to the market but we have to shift the stop as the entry was based on the weekly chart.

28/11/16 UPDATE: GBPAUD is trading at 1.6633 at the time of this writing.

Please click on the chart to enlarge:

GBPAUD Weekly Chart 28/11/16

GBPAUD Weekly Chart 28/11/16

We are closing 20% of the short trade at market price, stop remains at the entry (stop was later shifted to 1.6822)

GBPAUD Trade Alert

Please click on the chart to enlarge:

GBPAUD 4hr Chart 30/11/16

GBPAUD 4hr Chart 30/11/16

GBPAUD short at market price (1.6767)
Take profit: 1.6420
Protective stop: 1.6840
Risk Ratio (RR): 1 : 3 (approx.)
Estimated duration: 7 days

Note: This is a 4hr entry, we are increasing our exposure to GBPAUD.

06/12/16 UPDATE: Strong GBP demand at the London fix (end of month) triggered GBPAUD stops.

Trading Signals: Mixed Entry in GBPAUD

As all trades are closed this page can now be accessed by all traders. Open trades and relevant intraday strategies are restricted to members only. We have been providing trade alerts in the Forex market since May 2014.
Trading Signals: Mixed Entry in GBPAUD
MEMBERSHIP PLANS INTRADAY STRATEGIES OUR TRADE ALERTS
Trading Signals: Mixed Entry in GBPAUD