GBP AUD British Pound Australian Dollar Bullish
Friday 17th of March 2006 12:52:20 AM
GPB AUD
I am watching the British Pound Australian dollar pair right now live. It is in the process of a fast moving breakout. I meant to write about this a couple days ago, but I suppose better late then never at this point.
I am seeing a bullish bias on British Pound versus X currency pairs right now.
The GBP AUD has been building a very large symmetrical triangle since July 2005. That is about a 1 year symmetrical triangle. In other words this pattern has a lot of cause to it and hence I can make the conclusion at least for now that this run or breakout in the GBP AUD will have staying power and be a solid trend trade.
I see 2.3995 as the next resistance point which I expect to be broken successfully. Eventually I expect a move to 2.45 . But the first challenge is the previously mentioned resistance.
Symmetrical triangles have the potential to whipsaw and be unprofitable. Sometimes a false breakout occurs and then a pullback right back to the apex of the triangle pattern. I do not know if that will occur here yet but I am open to this possiblity always. So tight stops are definitely the proper course of action given this type of breakout.
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