GBPAUD trading analysis on dated 21-01-2019

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GBPAUD trading analysis

The GBPAUD trading (currency pair) involves buying or selling the British Pound (GBP) against the Australian Dollar (AUD) in the foreign exchange (Forex) market. Traders engage in GBPAUD trading for various reasons, including speculation, hedging, or managing international business transactions. Here are some key points to consider when GBPAUD trading analysis:

 

Research and Analysis: Before trading GBPAUD, it’s essential to conduct thorough research and analysis. This involves studying economic data, central bank policies, geopolitical events, and technical analysis to make informed trading decisions.

 

Market Hours: The Forex market operates 24 hours a day, five days a week. GBPAUD trading can occur during different market sessions, including the London, New York, and Asian trading sessions. It’s essential to be aware of these market hours to plan your trades effectively.

 

Trading Strategies: There are various trading strategies you can employ when trading GBPAUD, including day trading, swing trading, and position trading. Your strategy should align with your trading goals and risk tolerance.

 

Risk Management: Implement proper risk management techniques, such as setting stop-loss and take-profit orders. Risk management is crucial to protect your capital and minimize losses.

 

Fundamental Analysis: Consider economic factors that can impact the GBP and AUD. This includes interest rates, inflation, employment data, and central bank policies. Changes in these factors can influence the exchange rate.

 

Technical Analysis: Use technical indicators and chart patterns to identify potential entry and exit points. Common technical indicators used in Forex trading include moving averages, Relative Strength Index (RSI), and Stochastic Oscillator.

 

News and Events: Be aware of economic events and news releases that can affect the GBPAUD exchange rate. Major economic reports like GDP, employment figures, and central bank statements can have a significant impact.

 

Trading Platform: Choose a reliable and user-friendly trading platform to execute your GBPAUD trades. Many brokers offer online trading platforms with various features and tools.

 

Leverage: Be cautious when using leverage. While leverage can amplify profits, it also increases the potential for significant losses. Ensure that you understand the risks associated with leverage and use it wisely.

 

Demo Trading: If you are new to trading or the GBPAUD pair, consider practicing with a demo trading account to gain experience and confidence without risking real money.

 

Psychological Considerations: Emotions can significantly impact trading decisions. Maintain discipline and control your emotions when trading GBPAUD. Avoid impulsive decisions and stick to your trading plan.

 

Continuous Learning: The Forex market is dynamic and constantly evolving. Stay updated with market news, economic developments, and trading strategies. Continuous learning is essential for successful trading.

 

Remember that GBPAUD trading analysis, like any currency pair, carries inherent risks. It’s important to start with a solid trading plan, manage risk effectively, and only trade with money you can afford to lose. Additionally, it’s a good idea to seek advice from experienced traders or financial advisors and consider further education in Forex trading before getting started.

 

The RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the pair is trading above both its 20 and 50 day moving average’s [Respectively at 1.79370 and 1.77510] 

Type: Swing trade analysis

Recommendation: Buy @ 1.79500  Target: 500+ pips  Result: TP hit

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