The GBPAUD pair is on a clear uptrend making higher highs and higher lows on the 4 hour time frame. Currently price is trading in the August 14th to 18th Weekly candle range (Pink). We, at EWF, always encourage our members to trade with the trend and not against it.
In the chart below there is a clear Demand Zone (Blue) where possible buyers are waiting to push the pair higher. If the pair dips lower to the Demand Zone and not break below 1.9367 it will be a strong signal that the pair could reverse higher from this zone. A break below the Weekly August 14 2023 candle low can also fake out breakout sellers, grab liquidity and reverse higher. Traders need to be patient and wait to see if GBPAUD will dip lower to the Demand Zone and most importantly see a reversal pattern trade setup in the zone on the lower time frames like the 15 Minute or 5 Minute chart. Only if I see the lower time frames form a reversal pattern in the zone is when I will squeeze the trigger and get in BUYS/LONGS.
GBPAUD 4 Hour Chart August 27 2023
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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