GBPAUD exhibits short term inverse head and shoulders potential (bottoming). The setup is made more attractive by the impulsive rally (5 wave) from the lowest level in exactly a year. A break above 14900 would complete the short term formation. Given that the GBPAUD is trading at the low end of its 2 and a half year range, longs may be warranted for at least several weeks.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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