- Market structure: GBPAUD is range bound right now. At such instances, the course of action should be simple: to buy at support levels and short at resistance levels. In all aspects, GBPAUD is still bullish on higher time frames and even on H4, it is forming HH and HL’s. If market comes to 1.8935, we will take a sell and if market drops to the 1.8550, then we will take a buy.

- Trendline: There are two trendlines in play as this moment. GBPAUD broke out of the ascending trendline and is validated by the candles opening and closing below it. On the other hand, we have a descending trendline, which awaits its 2nd test, at which point, we will take a short position.

- Retracement: 1.8923 is the level of bearish retracement, which is in confluence with the resistance level. This confluence area confirms our sell setup. On the bullish side, we have the level of 1.8667, which lies below the support level. Once market taps this area, we might see a wick to the retracement level and then the close of the market at the support.

- EMA's: EMA’s have deviated in their direction. EMA 50 was broken out and is currently retesting the prices. EMA 200 is still bullish and the correction is due till the retest of the EMA. This retest could be our potential profit targets.

- RSI/CCI: Both oscillators are in a bearish range: RSI at 48 and CCI at 0. Once CCI turns negative, our sell setup can come into action. Another perspective of this is when oscillators move towards the bullish region and form a bearish divergence.

Setups like this in GBPAUD are rare since we are analyzing both the directions. If market takes a drop before turning bullish, we will catch that wave ride. If market starts dropping from the current price, we will wait for the prices to come to our support level, from where we will buy.

GBPAUD dual setup

Aug 12 2021

2