Chapter 46 Is GBPAUD going down?
05/01/2023
Summary
GBP PMI news Release leads the market
Fundamental analysis
UK private sector downturn eases in December, but employment slips into decline, The higher headline index reading was supported by a stabilisation of service sector activity at 50.0 following two months of decline, Today we have PMI news in the UK With negative expectations, On the other hand, we don't have this week much in use on the Australian dollar, And we know Australian dollar is gaining strength supported by the Australia central bank regulation.
U.K. Markit/CIPS Services PMI Final (Dec)
Previous 50
Expected 50
U.K. Composite PMI (Dec)
Previous 49
Expected 49
Technical analysis
We can see in this 4H diagram chart the pair is trending down by creating a lower high and lower low With a 20 moving average pointing down acting as a dynamic supply zone, We can see the market is pulling up to test back the previous supply zone at 1.26950 And also is the previous breakout area, We expect the market to go down continue to Create new lower low at 1.24818.
Trading Recommendation
Trading Direction: Short
Entry Price: 1.26020
Target Price: 1.24818
Stop Loss: 1.26951
