GBPAUD is looking very strong in July ending its 4-month choppiness after fully breaking June's external highs.

Join me as I share my first analysis and trade plan for the GBPAUD cross pair.

There are 2 high impact economic reports in the United Kingdom while none in Australia this week.

Assessing GBPAUD’s high timeframe candles:

Yearly Candle: A Green Body with a Longer Head Wick

Monthly Candle: Previous close is a Red Long Upper Shadow current is a Green Body with a Slightly Longer Tail Wick

Weekly Candle: Both previous and current are Green Bodies with Longer Head Wicks

Daily Candle: Previous close is a Green Long-Legged Spinning Top current is a Green Body with a Longer Head Wick

On the yearly view, GBPAUD continues to trade within 2023’s upper shadow.

After bottoming out at 1.89 levels in 3 successive months in May, June and July, GBPAUD consolidated in a 2-week sideways fashion.

The triple monthly bottom proved to be a formidable support level that led to a strong rally to the upside followed after breaking the 4H bearish FVG formed last June 18-19.

Also adding a keynote that the bulls performed a double bottom structure last December 2023 closing and January 2024 opening.

I like to use the volatile swing high to low moves that has occured in July 18 to identify the next key area for a long position.

It is clear that the 1.9420-1.9450 range is the next supply area before challenging April 2024 external highs first.

I definitely am not buying in right now to avoid FOMOing.

What I do instead is set a long limit order at June’s previous external highs backtest as a support.

I will target the take profit towards April’s external highs while setting the stop loss below the previous broken higher high trendline.

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top tier banks via ACY Connect.

The buyers are still in control so I like to capitalize on it.

All trade ideas I share are my own views and for my own trades only.

GBPAUD Intraday Analysis and Trading Plan For July 22, 2024

Jul 22 2024

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