GBP and AUD flags

Hey traders, heading off for a good start :)

Here is a possible trade I’d like you take a look at… But first, let me share with you a few things about this particular currency pair!

Its always good to know the personality of each instrument, its not very effective to treat in the same way all of them, because they behave in a different way. Heck, you cant even treat the same instrument in the same way one day from the other… go figure…

Get to know the GBPAUD

Its the GBPAUD… The first thing that you need to know is this one is a currency pair that really moves.

A 40 or a 50 pip move in this currency pairs means nothing, that means that we need to use large SL levels.

But in the same way, we can use large take profit (TP) levels. So its one for the other.

So at the end, the risk-reward ratio remains doesn’t get hurt.

It also has a larger spread then usual.

Are you with me?

GBPAUD Long Term Analysis

Here is the daily chart:


One of the main principles of the methodology I use is that the market moves from one level to the other.

In this case, the GBPAUD broke through an important resistance level (1.9166), so that means that it is likely to continue its way up, until it reaches its next long term level (which you can get from the weekly chart – 2.0262).

So you know the GBPAUD is likely to continue its way up, therefore its recommended only to look for long opportunities.

Now, from where can we go long?

GBPAUD Short Term Analysis

Let me show you the 15M chart:


Here we have different possible scenarios to open your trade:

  • You can go long just where the market is currently trading at: 1.9567
  • You can wait for a retracement to the short term support level (1.9512)
  • Or set your order 15 – 20 pips (above) from where the market is currently trading at

In all cases, your SL level should be placed below the ST support level (1.9512), remember what I told at the beginning of the article about the GBPAUD? Ok, be careful with that!

We’ll see how it goes!

Your Turn

What other instruments are you monitoring?

What do you think about this signal in the GBPAUD?

Are you going to take it?

Let me know in the comment section.

Tags: ,

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 .

  • Eviano

    It has started a new range (9.00GMT). So, I will wait for a new break out. please, correct me if I am wrong. Thank you.

    • Raul Lopez

      Hello Eviano, when you dont have a good amount of pips on your its better to close your trades and wait… You dont have to necessarily wait for a new break out, just for the right conditions and levels…

  • Abaid

    GBP is currently has strong Fundamental but AUD cutt of the cash rate so AUD will remain in selling and GBP will remain in buying so its pair is over all in buying trend and has strong trend

    • Raul Lopez

      Yep, I agree with you, hence the signal!

      Let me know if you have any question about it Abaid!

      • Abaid

        Dear sir what do you think it will take retrenchment for short time or will continue bullish trend..? Thanks

        • Raul Lopez

          Hello Abaid, right now its best to wait for the news announcement (interest rate), which is due tomorrow…

          So for now, just close your trade and wait would be my recommendation!

          • Abaid

            Thanks sir i am already have an eye on this news.

          • Raul Lopez

            Good, how did it go?

          • Abaid

            i am in 100 PIPs profit my buying pricing 1.95144. Thanks!

          • Raul Lopez

            Did you close your trade?

          • Abaid

            I closed my trade @ 1.96202 because my Technical analysis was predicting price will move down minimum 100 pips so i closed

          • Raul Lopez

            Well done Abaid! Congrats!

          • Abaid

            Thanks! I like your analysis too nice work thanks for helping to people

          • Raul Lopez

            No problem Abaid! Let me know if you need anything else!

          • Abaid

            Thanks Sir! If I will feel i will let you know.

          • Raul Lopez

            You got it!

  • Manvinder singh

    Love the analysis Raul

    • Raul Lopez

      Glad you like it, let me know if you have any question alright?

  • Eric Aroh

    Hi Raul,

    Welcome back; missed your incisive tips.

    I have been watching GBPAUD, and had actually placed a limit (buy) order @ 1.9660 – just 2 pips above 1.9658 which I considered had just formed a VERY short term Resistance.

    In terms of risk management: I checked the daily pip range movement for the past 14 days (251 pips), so I chose a SL of 100 pips and TP of 200 pips (to be calibrated with the next LT Resistance at 2.0806 if trade moves in this direction).

    The SL is 11 pips below the nearest swing low of the 15-Min chart. I do not intend to risk more than $1,000 real money, hence I entered with just 1 std lot size. Thanks. Eric

    • Raul Lopez

      Hey Eric, nice to see you here! Send me an email when you get a chance!

      The profit potential for this pair is pretty high, that’s the reason I wrote about it, the next LT level 2.0262, so we have more than 700 pips before we get to that level!

      Pleeeenty of room, what do you think?

      And yes, a good strategy here would be to take a breakout trade, placing an order just above the previous high!

      Good luck Eric!