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
![GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920](https://media.dailyfx.com/illustrations/2014/05/19/Forex-GBPAUD-Scalps-Target-Key-Resistance--Bullish-Above-1.7920_body_Picture_2.png)
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 & 1.8280/90–bearish 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
![GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920](https://media.dailyfx.com/illustrations/2014/05/19/Forex-GBPAUD-Scalps-Target-Key-Resistance--Bullish-Above-1.7920_body_Picture_1.png)
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:
- USDOLLAR, Gold Setups Target Key Resistance- Breakouts Pending
- GBPUSD Risks Major Support Break Ahead of Key UK/US Data- 1.6820 Key
- NZDJPY Monthly Opening Range Trade- Bearish Sub 89.50
- EURAUD Scalp Setup Favors Selling Rallies Sub-1.5030
- EURJPY Scalps Target Critical Support at 141
---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
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Interested in learning about Fibonacci? Watch this Video
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