GBPAUD broke the major resistance at 1.9000. After breaking the resistance, we need price action validation for the candles opening and closing above the levels. Also, this break out, confirmed the market structure for a bullish momentum. We will be looking to go long at the support level after the breakout buy.

The descending trendline has induced the breakout buy for the GBPAUD. This breakout has been validated and needs a retracement, and a lower timeframe trendline breakout buy as well, to continue moving up.

The golden retracement level of 75-78.6% is still slightly low than the support region. There is a chance market wicking this level of retracement at 1.8940. To be on the safe side, our stops are below this retracement level.

Both the EMA’s are bullish with a bullish death cross. Market broke out the EMA 50 and EMA 200 and is due a retest of either of the EMA’s. At the support level, we analyze the retest of the EMA 200. This will again add as a solid confirmation on our position. But the fact remains, the EMA’s are still down below and we are analyzing to take a long at the current market structure. At the retracement level, we may anticipate a retest of the EMA 50. This confluence can be a strong uphold for the continuation of the market.

Both the oscillators are in a bullish region. The oscillators are heading towards their neutralized levels. RSI is at 63 and CCI is at 155. What this means is that CCI is already near its neutralized levels at the current support level, whereas, RSI still has room to move down towards the neutralized levels. At the support level, the oscillators should be neutralized, hence providing us with an additional confirmation to continue moving up.

GBPAUD broke the resistance

Feb 14 2022

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