GBP/AUD pullback strategy setup

In the H4 timeframe, GBP/AUD initiated a sign of strength rally broke out the resistance level at 1.8280 immediately followed by a pullback testing the resistance-turned-support area between 1.8150–1.8200. The first breakout followed by a pullback presented potential trading opportunities to ride on the momentum to the upside. In this case, trading the pullback could present a relative high reward to risk ratio. Watch the video below (timestamp starts 4:35) where I explain in detail the one thing every trader should do when trading the pullback (most traders overlook this) and other nuances to pay attention to to increase the winning rate.

Below are the key parameters for GBP/AUD potential long setup for trading session on 19 Oct 2020.

Entry: short stop order at 1.8197

Stop loss: 1.8115

Take profit: 1.8320

Photo by Author — Ming Jong Tey

Resources

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