This setup was called out by Joshgagnuss in the War Room chat – shout out to Josh for this.
I actually overlooked this one because my weekly level wasn’t marked correctly.
GBPAUD has made a really strong push to the upside the last few weeks, just a tall tower of strong bullish candles. When I see this kind of towering, I know the market is likely to be ‘spent’ and a violent correction could be around the corner.
With the over extension in mine, I now see the GBPAUD market has bumped into a big weekly resistance level – an anticipated major turning point in the market.
To add fuel to the fire, a large bearish rejection candle (a price action reversal signal) has formed at this location.
This setup is a potential catalyst for a strong move down, with high reward potential if the setup does cause price to fall.
Best of luck on the charts!
steven metsing
Hi Dale
Looking at my comment on the 8:05 pm on April 7, 2018, there was downward move by this currency and not an upward move as i had sad..its a tripple bottom that formed on the daily chart…i think i am gonna join you quickly this year…but i have a question for you concerning the weekly alerts..do you provide your students with the weekly lines they should be looking at or we have to draw our own weekly resistance and support lines?
Shaun Walton
This is my first time on your website and this is the very first analysis I saw on the site and I actually just entered this trade short today for the very same reason lol Also, that weekly resistance level also happens to be the 61.8% retracement level of the large down trend previous to this up swing. Some confluence there. Thanks. Will definitely take your analysis into consideration when trading.
steven
Hi Dale, i have been following this setup on my daily chart, i agree that the weekly resistance was hit by the rejection bar, but i think this downward move will not last long as there is a upward breakout coming out.its going to be a strong buy upward move
Michaelforex
Yes, i have seen that set up too. its gonna be a good trade hopefully.