GBPAUD - Playing the Bearish divergence
GBPAUD presents a good trade to short as it also comes with +ve swaps.
After bearish divergence was formed, we saw a short squeeze with price making a high to take out the stops of the eager beavers. Price started is bearish decline now, but has left some markers. Firstly, 1.7893 level could act as a short term support to push price towards entry @ 1.8225 level. Alternatively, if price continues to be bearish, let it play out and keep an eye on 1.8225 and 1.7893.
We have two identifiable targets at 1.7463 and 1.6854. While the first target looks realistic the second target is a bit out of hands given the Sterling's bullish performance. So keep an eye out on further possible counter divergences (bullish) that might be formed over time with RSI.
After bearish divergence was formed, we saw a short squeeze with price making a high to take out the stops of the eager beavers. Price started is bearish decline now, but has left some markers. Firstly, 1.7893 level could act as a short term support to push price towards entry @ 1.8225 level. Alternatively, if price continues to be bearish, let it play out and keep an eye on 1.8225 and 1.7893.
We have two identifiable targets at 1.7463 and 1.6854. While the first target looks realistic the second target is a bit out of hands given the Sterling's bullish performance. So keep an eye out on further possible counter divergences (bullish) that might be formed over time with RSI.