GBPAUD Possible Short Opportunity

Hey traders,

Looking at GBPAUD on the 1hr time frame I have noticed 2 important things. First, we have run into a strong demand zone, and second we are creating a bear flag and the bottom of the flag aligns with the bottom of the demand zone at 1.825. If this bear flag breaks, and we confirm the bottom of the bear flag along with the bottom of the demand zone as new resistance, there could be some momentum to the downside with the initial target as 1.8215. A confirmed break below that could send us sailing down to 1.8178. Overall, if this plays out and we head into the lower zone (in red) that's almost 100 pips!

The Stoch RSI is looking like it's about to cross giving us a great confluence there for downwards momentum. The MACD is still stuck together, but that is typical when the market is consolidating in the flag. The 12 EMA (in blue) is falling into the bear flag which is another great confluence for this breakdown below, and the 26 EMA (in red) is still way above the 12 EMA which is where we want it! This is what I call ***THE STARS ALIGNING*** :))

If I were to take this trade, I would set my Sell Limit right below the bear flag, with my Stop Loss set just above the 12 EMA (in blue). When the market breaks initially, I will switch to the 15 minute time frame to watch for the breakout confirmation, and that is where I will have my trade placed for prime positioning.

~Mainstay

***This is not not intended as a recommendation to buy or sell, and is for educational and informational purposes only***