GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920

DailyFX

Talking Points

  • GBPAUD eyes key near-term resistance
  • Weekly opening range taking shape just below
  • Major event risk on tap from Australia & UK

GBPAUD Daily Chart

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GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • GBPAUD testing key resistance range- January 24th TL / Fibonacci confluence 1.8022/50
  • Breach targets resistance objectives at 1.8184 & 1.8280/90bearish invalidation
  • Support at 1.7830, 1.7803, 1.7756 & 1.7663
  • Daily RSI support/resistance triggers pending
  • Event Risk Ahead: RBA minutes tonight UK CPI Tomorrow, Retail Sales on Wednesday and 1Q GDP on Thursday

GBPAUD Scalp Chart

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GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920

Notes: The GBPAUD is approaching a major inflection point with the weekly opening range taking shape just below a key Fibonacci resistance range between 1.8034/43. We’ll utilize this region as our weekly opening range high with a breach/close above targeting subsequent topside objectives. Not that last week’s rebound took place at the April 10th close price (the monthly low was made that day- bullish).

The pair broke above near-term trendline resistance dating back to the monthly high last night and a pullback to test this level as support may in the cards before the next leg. Bottom line: long-scalps are favored while above 1.7920 with a breach above 1.8034/43 offering further conviction on our near-term directional bias.

Use caution heading into the Asia/Pacific session tonight with the release of the RBA minutes due at 9:30PM (ET) and the UK Consumer Price Index (CPI) on tap tomorrow morning. Follow the progress of this trade setup and more throughout the trading week with DailyFX on Demand.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Key Threshold Grid

Entry/Exit Targets

Timeframe

Level

Significance

Bearish Invalidation

Daily / 30min

1.8034/43

61.8% & 38.2% Ext(s)

Break Target 1

30min

1.8074

Last Week’s High

Break Target 2

30min

1.8105/17

61.8% Retracement / 100% Ext

Break Target 3

Daily / 30min

1.8176/84

61.8% Fib Ext / May 2nd Close

Break Target 4

30min

1.8220

Soft Resistance / Pivot

Break Target 5

Daily / 30min

1.8280/90

38.2% & 50% Retracements / May ORH

Bullish Invalidation

30min

1.7921

Weekly ORL / Pivot

Break Target 1

30min

1.7870

Soft Support / Pivot

Break Target 2

Daily / 30min

1.7830

May ORL

Break Target 3

Daily

1.7803

200DMA

Break Target 4

Daily / 30min

1.7737/56

April Low / 100% Ext

Break Target 5

Daily

1.7663

50% Retracement

Average True Range

Daily (20)

114

Profit Targets 27-29pips

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars Tuesday - Thursday this week on DailyFX Plus (Exclusive of Live Clients) at 15:30 GMT (11:30ET)

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