Who wants 500+ pips?

GBP and AUD flags

Let me ask you one question…

What is our main goal as a trader?

Think about it for a minute or two (alright, a few seconds will be enough)…

If your answer was to make money… you are wrong.

Thats a by product… it comes as a results of our main goal as a trader, which I believe to be:

To find everyday, the best currency pairs to trade.

So I actually look for three things:

  • Clear support and resistance levels
  • Clear market swings
  • Good profit potential

If you always trade currency pairs that have the above points, you’ll be on your way to a successful trading career…

And here is one of them…

GBPAUD Analysis

I know some of you dont like to trade this one because of the spread, but dont pay too much attention to the spread… I’d rather trade a clear currency pair with a wider spread than a not so clear currency pair with a tighter spread…

Are you with me?

Ok, here is the Daily chart:

GBPAUD 1D

You see where is it trading at?

It is currently trading at 1.8488 and the next LT level is around 1.9050, so we have more than 500 pips before we hit the next LT level, so we’ve got plenty of room and time to take our trade.

Your Turn

What do you think about the GBPAUD?

Are you going to look for trade opportunities in the GBPAUD? Or are you a little worried about the spread?

What other currency pairs are you monitoring/trading?

Share your thoughts!

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Varahala Babu

    hi raul…..i have choosen some currency pairs with clearest market condition….

    eur/usd bearish

    nzd/jpy bearish
    eur/nzd bullish
    usd/chf bullish raul ….do you agree with these pairs direction

    • Raul Lopez

      I havent had a chance to look at your pairs Varahala, I’ll look into them and give you my feedback!

      Good luck!

  • pduarte

    Hello Raul,

    I have a sell stop at 0,9695 in the audcad.

    In the EURUSD i am going to wait for a breakout of the 1.2665 level and try to enter in a retracement.

    What do you think?

    Cheer’s,

    Paulo

    • Varahala Babu

      hi paulo… do you agree with the above pairs i mentioned

    • Raul Lopez

      Hello Paulo, the EURUSD is one of the clearest currency pairs to trade right now… so yes, I’d look for trades there, without a doubt!

      That sell stop order was correct, but wasnt triggered right? Now I think you need to remove that order!

      Have a great week ahead Paulo!

  • pduarte

    It’s time to wait.

    What do you think Raul?

    Cheer,s,

    Paulo

    • Raul Lopez

      Hey Paulo, I apologize for the late response… I took a few days off because of the results on the previous two weeks!

      I’m back on track now!

      Have a great week ahead!

      Cheers,

  • Varahala Babu

    hi raul… can we go short trade on eur/usd …..because it seems it has broken long term support level..do you agree

    • Raul Lopez

      Hey Varahala,

      I apologize for the late response, I took a few days off… And yes, the EURUSD is bearish, It’s a good time to look for short opportunities…

      Good luck!

  • pduarte

    Hello Raul,

    are we back to the USDNOK?

    • Raul Lopez

      That’s correct Paulo… After that large retracement (caused by fundamentals) the USDNOK created a small range, that breakout put us back on track!

      I really appreciate your comments and inputs Paulo!

      Have a great weekend!

  • pduarte

    Hello Raul,

    Here is another thought.

    “We have to strike while the iron is hot”

    when the market whant´s to go in one direction and we are making money, just keep adding to new positions every time it’s possible.

    XAUUSD
    AUDCAD
    NZDCAD
    AUDUSD
    NZDUSD
    GBPAUD
    USDCAD
    GBPNZD
    XAGUSD
    USDCHF

    All positive

    Sell stop to AUDJPY and EURUSD

    As you can see, today I am kind of a philosopher.

    Best for you

    • Raul Lopez

      Hahahahaha and I can see why!!!

      Congrats Paulo! And you are absolutely right! We need to take advantage when the market moves on our favor, and these last few weeks has been that way!

      Have a great weekend Paulo!

  • pduarte

    Hello Raul,

    Just a comment of what I have experienced.

    We have got to give space to the market to take a breath, but sometimes the market take a smal breath and sometimes the market take a deep breath. We just have to keep calm, and as long as the market remains in our levels we just got to be patient.

    Best for you,

    Paulo

    • Raul Lopez

      That’s correct! Yep, sometimes we get caught when the market breaths (as we did in the USDNOK), but we need to remain calm, regroup, be patient and wait for the right moment to get back in!

      Thank you for your feedback!

  • Robinson

    Awesome trade!… Thank you so much Raul!… I’ve also been watching the NZDJPY and it seems to be playing around with a very important level at the moment. If this level is broken, there is potentially another 500 pip gain on the short side until it would hit the next important level. What is your opinion on this pair?

    • Raul Lopez

      That’s correct, it is currently trading near an important level, so we need to wait a little longer until the market gives us any idea of what it is going to do!

      Cheers,

      • Robinson

        Hi Raul,
        Seems like there is a very strong bearish momentum going against the NZD. There was a strong break for the NZDJPY and I believe there is still more to come. According to my analysis, there is great potential for this trade since the next important level seats around the 80.0 mark. Now just waiting for my entry to ride the wave… What do you think?

        • Raul Lopez

          Yep, now we only need to wait for the NZDJPY to settle down in the short term charts to look for a good entry.

          Good luck!

  • zamile

    Good day Raul
    Again I want to thank you for the light you have shared on your ebook, personally you have helped me a lot. On the 9th I asked your opinion on the NZDUSD with an important level at 0.8051. And the pair got to the level and on Tuesday 23/09 I was watching its next move whether it was going to bounce or break. Looks like it has broken and the pair will continue towards another level at 0,7692.I am still waiting for confirmation. Can you kindly please advise or share your opinion,
    Also keeping my eye on the GBPNZD long, with next potential level at 2.1049
    Another possible 500pips
    Regards
    Zamile

    • Raul Lopez

      Yep, you are right… NZDUSD is extremely bearish and the GBPNZD is extremely bullish! Both of them are good trade opportunities…

      Specially the GBPNZD, because of its profit potential!

      Now you need to find a good entry level!

      Good luck!

  • Chipo Ruvengo

    Hi Raul
    Do you think its time to short EURUSD looks like it has just broken through the LT level.

    • Raul Lopez

      That’s correct Chipo!!!

  • Muhammad Ali Awan

    Hi Raul
    according to your analysis GBPAUD will reach 1.9050. Do you think it will climb that high.

    • Raul Lopez

      Yep, that’s correct! But that’s just what I think… the market will always have the last word… only time will tell!

      Good luck!

  • Budi

    Hello Raul,
    You said: “I thought it was trading at an important level until earlier today that it broke the ST resistance level, triggering a bullish condition…” (GBP/AUD)
    Which one you consider the ST resistance level, 1.8350 or 1.8450 ?

    And also how you manage stop loss, example for AUD/USD that has been running down now, fixed it at 0.9003? or how? please explain..

    Thanks…

    • Raul Lopez

      1.8450…

      Each trade is different, and for that reason we need to manage the SL in different ways, but still, you need to use the same methodology…

      In this case, if you take a trade, you need to place the SL below the ST resistance level (now support).

      Good luck!

      • Budi

        What I want to know is do you move the SL, or maybe use trailing SL, as the price move closer and closer to the target?
        Thanks..

        • Raul Lopez

          Yep, I keep moving my SL levels, but I still give the market enough room to “breath”, I move it based on the short term levels.

          Have a great week ahead!

  • Marcel Piljar

    Hi Paul, what about 1.8640 and 1.8790 levels? Are those not important? Because I think there could be problem areas… However, your setup looks very good.

    • Raul Lopez

      Hello Marcel, 1.8790 might be a significant level, but it isnt an important level because it has been rejected from there only once… If we had a level for every rejection we would end up with hundreds of levels….

      So I think the market might pause there, but I dont think it will change direction until it gets at least to the 1.9081 level…

      What do you think?

      • Marcel Piljar

        There is a strong uptrend since September 7 and I don’t think it will break at 1.8790, but we will face a correction there or at least a pause (as you wrote). I agree with you.

        We will see then

        • Raul Lopez

          Only time will tell… Good luck Marcel!

          and thank you for your contributions!!!

          • Marcel Piljar

            Raul, I see good entry level at 1.8450. What do you think about it? This level crosses up trendline and support line, which was resistance level a few days ago.

          • Raul Lopez

            That’s correct Marcel, that`s exactly where I have my ST level at… Once the market broke through that level, it triggered a bullish condition.

            Good luck!

  • Nuraj

    Thanks Mr.Raul,I’m Open a trade.
    TP : 1.90

    • Raul Lopez

      Good luck!

  • paulb

    Hello Raul,
    Looks good. I presume you would wait for a pull back to near support before taking a trade and therefore reducing the stop loss?
    Paul

    • Raul Lopez

      In this case yes Paul, that’s exactly what I’m waiting for…

      What about you?

      • paulb

        Hi Raul,
        I bought at 1.8450 since there was some support on the 1H chart. I was a bit cautious but may add to my position.

        Paul

        • Raul Lopez

          Good luck Paul! And thanks for letting me know…

  • pduarte

    Hello Raul,

    That’s clear a good one.

    Cheers

    • Raul Lopez

      I hope so Paulo!

      Cheers,

  • dominiek

    i have been watching this currency for some time… some days ago we had a clear bearish signal but was false… looks like it will keep on going up…aud very weak and if the pound might get stronger we might be in for a good trade

    • Raul Lopez

      Where did you get that bearish signal?

      I thought it was trading at an important level until earlier today that it broke the ST resistance level, triggering a bullish condition…

      Good luck!

      • dominiek

        daily candle 18 sept… also broke out of bollinger band

        • Raul Lopez

          No my friend, I dont follow technical indicators… Just price action!