GBPAUD channelling

Morning Dynamic Traders

I hope you've all had an outstanding weekend and are ready for an even better week ahead!

Below is the daily GBPAUD. You can clearly see a channelling pattern price has formed, bouncing between a strong resistance and support line. As the trend is down, the odds favour a continuation south.

1. One confluence for a short is the tag of the R - well almost. There's always the chance that price will bounce up to test it properly.

2. But with the additional confluence being the recent tramtracks we have a good indication that price may weaken.

3. In addition to this we have the MACD divergence.

So we now have a nice collection of confluences for a short. ESLT could be used on the previous bar to the high for an aggressive entry. Of course the daily chart is in this current range and a more conservative entry would be a bob of the low.














Going to a lower TF could provide a better set up, so I'm also keeping an eye on the 4hr timeframe for entry. Price has recently broken the TL, but now I'm awaiting for a BOB of the VI before any action is taken. There is a S/R level close below so this should be taken into account for a safer trade.














My GBPCHF and USDCHF trades are in positive territory as of this morning. I'll keep you updated as the week progresses.

Great trading!
Sonia Molina