GBP/AUD Bearish Signal After Retracement Pattern
- 1H and 15 min: Following up on an earlier post on this exotic pair, the GBP/AUD has reached our intra-session target at 1.8250 and has topped off as we anticipated. (Refer to Daily Technical Update 12.17.2009 GBP/AUD).
- As mentioned, this would spell the completion of an abcd retracement pattern, which means the market may reverse back to a decline from this area if it tops off.
- The market HAS topped off as we see reversal combination at the 1.8250 area, then a break of the short-term (intra-US-session) trendline. This could be a trigger suggesting the market may be ready to decline further towards the projection area.
- This swing projection may have to adjusted slightly to 1.80-1.8050 (50% retracement)
- It should also be noted that this is a very near-term projection, and should be monitored very closesly as it goes against this week’s general sterling strength.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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