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Facts:
- GBPAUD is trading below the 100-period moving average from H1 interval
- The pair broke below the support at 1.3600
- The pair invalidated 1:1 structure
Recommendation: Trade: Short position on GBPUSD at market price Target: 1.3525, 1.3480 Stop: 1.3630
Opinion: GBPUSD has been trading in an upward trend recently. However the pair may be experiencing a trend reversal. Looking at the pair at the H1 interval, one can see that the price broke below the lower limit of the 1:1 structure which, according to the Overbalance strategy, may herald a resumption of a downward trend. As long as the price sits below the 1.3600, the further downward move is the base case scenario. In addition the price sits below the 100-period moving average from the H1 interval. Taking this into account, continuation of the downward move looks to be the base case scenario for now. We recommend going short GBPUSD at market price with two targets: 1.3525 and 1.3480. We also recommend placing a stop loss at 1.3630. Source: xStation5
