In our recent report about the GBP/AUD we recommended selling the currency pair below the simple moving average 50 and below 50% Fibonacci at 1.6740. Now the pair is trading at 1.6276, which means we made profits of more than 430 pips. Additionally, a huge drawdown happened on February 2 because the Bank of England kept the exchange rate with no changes.
Today we would discuss the same pair and look for another opportunity to make a profit. The pair is trading above the upside trend line as we can see in the daily chart, and it may touch it around 1.6140. The same levels are the supply zone; we can buy the pair around it but we have to wait for many signs to confirm this.
The MACD indicator is giving us a sell signal and the slope line is touching the down columns, but the RSI hasn't reached 10 level yet so we have to be patient.
The Next Few Days
Based on this analysis of the daily chart, we can Buy the pair in the supply zone around 1.6140 but we have to wait for the buy sign from the MACD indicator and a bullish price action candle, keeping our first target at 1.6530 and the second at the SMA level. If it breaks the supply zone we can sell the pair and keep our target at 1.5790.
We have to keep track of the upcoming hot news like the RBA Monetary Policy Statement from Australia and manufacturing production from the UK on February 10.
