GBP/AUD trade idea: How to play the long term trend decelerating higher

Strongest trend higher

Using the VolatilityMarkets software to structure a GBPAUD trend following trade idea.

Part 1) Introduction

VolatilityMarkets suggests trend-inspired trades that capitalize on market trends.

In the short term GBPAUD has been negatively accelerating lower. In the long term GBPAUD has been decelerating higher. With the long term trend being the stronger of the two, we propose a long trade idea with a time horizon.

Part 2) Trade idea details

2a) Trade idea graph

2b) Intraday predictions

Buy £ 409,200 GBP , or 4.09 lots of GBPAUD, take profit at £ 1.8182 level with 49.89% odds for a £ 1,002 GBP gain, stop out at £ 1.8094 with 50.0% odds for a £ 1,000 GBP loss through O/N time horizon

Part 3) GBP/AUD trend analysis

GBP/AUD last price was £ 1.813787. The long term trend decelerating higher is stronger than the short term trend negatively accelerating lower. This trade goes long when the price was moving higher but decelerating over the past 20 days.

Part 4) GBP/AUD value analysis

Over the past 20 days, the GBPAUD price increased 12 days and decreased 8 days. For every up day, there were 0.67 down days. The average return on days where the price increased is 0.3774% The average return on days where the price decreased is -0.2431% Over the past 20 Days, the price has increased by 2.6% percent. Over the past 20 days, the average return per day has been 0.13% percent.

Part 5) GBP/AUD worst/best case scenario analysis

Within 1 week, our worst case scenario where we are 95% certain that this level won't trade for GBPAUD, is £ 1.800868 , and the best case scenario overnight is £ 1.826706 . levels outside of this range are unlikely, but still possible, to trade. We are 50% confident that £ 1.8094 could trade and that £ 1.8182 could trade. These levels are within statistical probability.

Key takeaways

• Price today £ 1.813787.

• Over the past 20 days, the GBPAUD price increased 12 days and decreased 8 Days.

• For every up day, there were 0.67 down days.

• The average return on days where the price increased is 0.3774%.

• The average return on days where the price decreased is -0.2431%.

• Over the past 20 Days, the price has increased by 2.6% percent.

• Over the past 20 days, the average return per day has been 0.13% percent.

• Over the past 20 days, The price has on average been decelerating: -0.6532 pips per day higher.

• Over the last session, the price decreased by -41.71 pips.

• Over the last session, the price decreased by -0.23 %.

• Over the last session, the price decelerated by -88.16 pips.