Price has now moved higher and into the near term resistance area after breaking higher and confirming a Bullish Engulfing Bar (BUEB) on the daily chart of the GBPAUD chart. This BUEB was rejecting a key daily support level that had been holding price as a support level from moving lower for the past two months.
After breaking the high of the BUEB and in the process confirming any trades that traders had set to enter this engulfing bar, price moved higher and into the first level of any significance. Price has been in an overall up-trend, but in recent times it has been stuck in sideways trading. If price can once again break higher and gain momentum, the next resistance on the horizon comes in around 1.8750 and if this then can break the recent extreme highs would then look to be on the cards.
If price rolls over, price action traders should be on the look out for any signs of break out trades and new short term trends beginning to the down-side so that they can make the best of any opportunities that present.
GBPAUD Daily Chart
I also took this trade but too late. Do you think the price will go up even more? Do you think it will reach 1.8750 level? It looks weird now…