For the last few weeks I have been featuring GBP/AUD in my Forex price action analysis. Why am I featuring such an obscure pair?
… Because it constantly gives me easy and profitable reversal trades.
This weeks GBP/AUD price action reversals
Over the course of two days we got two very similar reversal setups at the 1.9775 resistance area on GBP/AUD. The setups are highlighted in yellow below.
So, how did these trades work out?
The first trade was entered short at 1.9765 with a stop loss of 45 pips and a first target of 75 pips. The second target of this trade was just over 110 pips. The first target was set at 75 pips because we often find that price gets tired as it pushes beyond the halfway mark between two areas of support and resistance. The second target was taken just before the support area at 1.9630.
The second trade had the same entry, stop and first target as the first trade. However, the second target was taken a little earlier at the 1.9680 as price stalled there for around an hour.
I do not normally jump out of the trade if price stalls for an hour. However, since I do not like being in trades too late on Friday, the brief stall was enough to drive me out.
GBP/AUD seems to really adhere to support and resistance areas well. When you see strong indecision forming on an area, you usually end up getting a really nice trade. You will also find that with GBP/AUD you get very similar setups from the same areas two or even three times.
I missed the first trade but caught the second. The entry, stop and targets for the first trade are based on the live trade of one of my advanced course members.
If you do not understand how and why these trades were taken, check out my free Forex price action strategy.
If you have any questions about my price action strategy or GBP/AUD please ask below.