The GBPAUD has broken and closed below a key support price action level on the daily chart. Price on the daily chart had been in a clear up-trend with price moving higher since March of last year. Price has now hit a resistance level and started forming a top with price beginning to roll over. Price has now made a lower high and confirmed this by going onto make a new lower low by breaking the support level and closing out below. As I speak about in this article here: The Secrets Traders Can Learn About Price Action where price closes can be really important to where price then goes next in a lot of cases.
If price moves back higher, it may provide an opportunity for price action traders to look for short trades on their intraday charts such as the 4hr and 1hr charts at this old support area. If price does move back higher, the support level that price broke through may look to act as a new price flip resistance level and traders will have to watch the price action to make sure the level is going to hold as a new resistance. For any bearish trades to be confirmed at this level, high probability bearish price action setups would have to be printed such as the ones taught in the Forex School Online courses.
GBPAUD Daily Chart
Leave a Reply