GBPAUD end of breather?

Good Evening Dynamic Traders

I hope you all enjoyed the weekend! The artic conditions in London aren't giving up.. more snow on the way apparently. Well if we do end up snowed in again, at least we have trading to keep us busy.

I wrote about GBPAUD last week - a good trade as it handed out nice instant profits and I'm now managing this trade without any risk. I hope some of you traders out there also benefited from this market move. I mentioned that price was probably due a breather after its steep move down and indeed that is what happened. Nothing magical about it.. it's trading basics. After every move, we'll usually see price have a breather.














On the chart you can see the price retracement, almost tagging the VI as R (nothing's exact in trading!) Check out the candlestick formations we have - a sizeable spinning top soon followed by a bearish engulfing candle. At the same level we also have a fib breather acting as R. So a nice collection of confluences for a short entry if you're not already in this trade. If you're risk free, a possible compounding opportunity on the horizon for a continuation. I'm awaiting a bob of the low for entry. Bear in mind the RN 1.7500 could act as support and check back in with the big brother timeframe for S/R levels.

Please carry out your own analysis.

I've started reading 'How I Made $2,000,000 in the stock market' .. such an interesting read! Worth putting on your reading list if you haven't read it already.

Abundant trading!
Sonia Molina