GBPAUD downtrend channel continuation
On the Monthly GBPAUD chart, we can see that the pair is going for a test of the downside of Andrew’s Pitchfork channel MEDIAN line 1.7000. A break BELOW this resistance will mean a complete shift in the medium-term uptrend. It will certainly lead to a test of 1.5500 level for a huge downside fall.
On a Weekly chart, we can see that the GBPAUD price action is breaking below the resistance of a recent medium-term uptrend Pitchfork channel. This break is perfect for the short trade entries. You could open a good RR short trade entry with the stop loss just above 1.8100 to target lower on a continuation to 1.7000 long-term downside resistance near-term. Only a sustained break above 1.8120 will lead to a downside continuation invalidation.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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