Descending Triangle Pattern - A Good Trade Setup on GBPAUD - Forex News by FX Leaders

Descending Triangle Pattern – A Good Trade Setup on GBPAUD

Posted Wednesday, October 18, 2017 by
Arslan Butt • 1 min read

Our trading signal on Gold gave us a good start today as it's closed at take profit level. For now, the forex crosses are offering some good opportunities. Let's check this out.

 

Technical Overview – GBPAUD

Taking a look at 4- Hour Chart, the GBPAUD is consolidating in the descending triangle pattern which supports the pair at $1.6785. On the same level, the pair has just formed a triple bottom level.

GBPAUD - 2 Hours Chart - Descending Triangle PatternGBPAUD – 2 Hours Chart – Descending Triangle Pattern

Interestingly, the leading indicators are holding in the oversold zone. That's signaling that a bullish retracement is imminent. On the flip side, the downward trend line is providing a resistance at $1.6915

 

Support     Resistance

1.6766         1.6889

1.6719         1.6965    

1.6643         1.7012

Key Trading Level:    1.6842     

 

GBPAUD – Trading Plan

The idea is to stay in buying above $167.75 with a stop below $167.550 in order to target $168.750. We can also place a Sell Stop. It will be rational to use small trading volume for this position. Good luck!

 
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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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