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GBPAUD approaching 1st support, potential for a bounce!

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Price is approaching our 1st support, which is in line with our 76.4% Fibonacci retracement, 161.8% Fibonacci extension, and ascending trendline support. We could potentially see a bounce at this level as price continues to hold above the ascending trendline support, and a further push up towards our 1st resistance, which is in line with our 61.8% Fibonacci extension and horizontal swing high resistance. It is worth noting that the Stochastic indicator is also approaching the lower support level at 5.64 where it has reacted off before.

Trading Recommendation

Entry: 1.79246

Reason for Entry:

76.4% Fibonacci retracement, 161.8% Fibonacci extension, and ascending trendline support

Take Profit: 1.80850

Reason for Take Profit:

61.8% Fibonacci extension and horizontal swing high resistance

Stop Loss: 1.78600

Reason for Stop Loss:

78.6% Fibonacci extension and horizontal overlap support

The material has been provided by InstaForex Company - www.instaforex.com