GBPAUD (POUNDAUSSIE) MARKET ANALYSIS

 Good morning traders, I hope you're all well this fine sunny morning. This week the markets have been in more of a continuation of last week's trends in most markets as no major reversals have been seen yet. I'm still holding my XAUUSD (gold) shorts from last week which I'll give updates on within the week. Into the charts this week, I've been looking at GBPAUD where price rallied to a key H1, H4 & daily supply zone at 1.76961 & 1.76146 which is the origin of the previous drop to 1.73592 the 1st H1 low. Price has filled the 1st minor range from supply to the H1 low at 1.73592 and back to supply. Took sell entries yesterday during London session at 1.76152 with SL at 1.76880. Setup taken is a rally base drop, a reversal setup and my 1st target is at the H1 low at 1.73592.

Price rallied into supply, formed candle close inside followed by a bearish engulfing candle on H1 and candle close below supply showing more confluence for the shorts. Price consolidated inside supply for a while without any move then gained momentum late into NYSE dropping with strong momentum to the 1st H1 low at 1.74950. Price formed a strong H4 bearish candle confirming the shorts bias and patiently waiting for the move to play out.