GBP/AUD RETRACEMENT COULD SETUP THE BIG SHORT.
The word for the week is: INITIATIVE.
Why so?... Simply because the market state can change at any given hour and we must be able to adapt & REACT, rather than be married and drown...
Last Friday's GBP/AUD article was aimed towards capturing a potential third & Final pop up toward 1.8150, while also stating that an evident H4 closure back below 1.8000 would invalidate this viewpoint & that it will be best to re-visit the pair after the weekend. So here we are.
Price spiked through the level: 1.7850 early hours this morning with the rate now pulling back into a retracement zone after the most recent bearish dump. I have highlighted a stable area in which the market may touch before heading lower - 1.7950.
Any accelerated movement could push the pair back up towards 1.8000, so also take note that there's more than one crucial price point to be aware of. A downside target for G.A is 1.7750 so allowing the retracement to unfold further enhances the risk-reward profile of this setup.
Where to use initiative - The above becomes invalid is the pair breaks & starts to trade above 1.8000.
Thank you: @ShaunLeeOfficial