DailyFX.com -

Talking Points

  • GBPAUD takes out monthly rang high after rebounding off 200DMA
  • Broader outlook constructive above 1.7830
  • Event risk on tap from UK this week

GBPAUD Daily Chart

GBPAUD Scalps Favor Buying Dips Post June Range Break

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • GBPAUD breaks June opening range high / 61.8% retracement at 1.8137- bullish
  • March TL breach targets key resistance objectives at 1.8280/90, 1.8388-1.8408, 1.8632
  • Support at 1.79, 1.7830 & 1.7756-bullish invalidation
  • Daily RSI 40-hold / 50-breach- constructive
  • Event Risk Ahead: BoE Minutes tomorrow and UK Retail Sales on Thursday

GBPAUD 30min Chart

GBPAUD Scalps Favor Buying Dips Post June Range Break

Notes: The broader focus remains weighted to the topside for GBPAUD after a clean rebound off the 200-day moving average earlier this month. The pair is now testing trendline resistance dating back to the March high with the weekly opening range now set just lower. Intra-day RSI divergence at the highs has the immediate focus to the downside into the open of Asia-Pac trade tonight with a pullback likely to offer clearly topside momentum triggers.

Bottom line: today’s rally took the pair through the June opening range high and we’ll look to buy dips while above 1.8034/42. A break below this level shifts the focus lower heading into next week with such a move likely to offer more favorable long entries. Note that BoE minutes tomorrow are likely to fuel added volatility in sterling crosses and as such, caution is warranted heading into the release. Follow the progress of this trade setup and more throughout the trading week with DailyFX on Demand.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Key Threshold Grid

Entry/Exit Targets



Technical Relevance

Bearish Invalidation

Daily / 30min


Weekly ORH / March TL Resistance

Break Target 1



76.4% Retracement

Break Target 2



Soft Resistance / Pivot

Break Target 3

Daily / 30min


38.2% & 50% Retracement(s) / May Close High

Break Target 4



May High

Break Target 5

Daily / 30min

1.8390 – 1.8408

61.8% Retracement / 100% Ext

Support Target 1



Soft Support / European Session Low

Bullish Invalidation



Weekly ORL / 38.2% Retracement

Break Target 1



50% Retracement

Break Target 2



61.8% Retracement

Break Target 3

Daily / 30min


78.6% Retracement / 200DMA

Average True Range

Daily (20)


Profit Targets 26-29pips

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play Heading into NFPs:

  • GBPNZD Weekly Opening Range Play- 1.96 Resistance in Focus
  • AUDJPY Long-bias at Risk Sub 96- BoJ / China Data On Tap
  • EURAUD at Fresh 2014 Lows- Reversal Risk High Above 1.4420/40
  • Breakout or Break Down? NZD/USD Eyes Critical Resistance Pre-NFPs
  • USDCAD Risks Reversal Ahead of NFPs- 1.0950 Key Resistance
  • EURUSD Targets 2014 Lows Ahead of ECB/NFP- Opening Ranges in Focus
Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Trading Center