GBPAUD Short/Long Setup - Detailed Analysis

2020년 7월 22일

According to last week’s GBP COT report we can see a strong increase in the long “contract” sizes. Even a decrease in short positions can be seen within the long-term investors. This gives us a strong confirmation that price will most likely once again go towards the daily critical near the 1.81000 area.

The last few months we are in a downtrend and finally we came near a strong monthly critical area which can give us some trading opportunities:

1. For the past couple of weeks, price tried to break over the daily/4H critical zone near 1.81000 but failed and right now it is headed down towards the monthly critical near 1.76000. There we will see strong buy pressure and with the COT information that we have, we can expect another attempt towards the daily critical near 1.81000. Another confirmation for this to happen is that the monthly critical aligns perfectly with the 0.618 Fibonacci retracement.

2. We must not forget that we are still in a downtrend and before doing a trend-reversal, price must do a false breakout bellow the monthly critical near 1.74000. That is why after we see the attempt for a break on the daily critical at 1.81000, we can prepare for a sell entry when we see a strong rejection from that zone.


Happy Trading!