GBPAUD bullish outlook

28 mar 2015

Interesting doji formed on the weekly chart off the uptrend line. While I don't usually pay much attention to indicators, this time they actually line up nicely, MA's all lined up above each other, oscillator looks like it's ready to turn bullish off the oversold area.


Zooming in to daily chart, we can clearly see the resistance around the 1.9200 level, off which the price has bounced several times before. Clearly, if we are looking to buy, this level has to be surpassed first.


Zoomin in to 4hr chart, we can see the uncertainty candle (with both up and down wicks) near the above mentioned resistance level. As per the stochastic oscillator, we are a bit overbought at this level, and I would expect the price to retrace down to at most 1.9000 level (a break below that level would nullify my current outlook).

Once the price takes out the 1.9200 level, my target becomes the 1.9550 level.

Happy Trading.