GBP/AUD Daily outlook – 06 January
The sterling weakened against the Aussie on Thursday resulting in the daily candle closing as a bearish pin bar. The market initially pushed higher, however was met with strong resistance at 1.5200 which was unable to be broken. Late trading saw a fall back lower.
The daily pin bar was the 3rd bar in a bearish Hikkake pattern suggesting further losses could be seen in the coming days.
The strength of the 1.5200 area can be seen in the chart below
We’ll be looking to short this market down to initially 1.50 and depending on price action possibly lower. The market formed an almost perfect double bottom at this level in September & October which suggests we may see a struggle to push through. To make the trade worth while with a good R:R we’ll look to sell on limit at a 50% retracement of Thursdays bar with a stop just above the highs of the day.