Be ready for either direction on the lower timeframe.
Technicals to assess. We have a bearish hammer forming on the 4 hour chart. The Fibonacci down trend is in play, however the 61.8% has not been attacked yet with no signal of a lower high formed. With GBP AUD - price moves quick with a strong engulfing once the orders are ready and filled to either the downside or upside. If the trend line is intact, then the lower high rejection wicks are in play. A break will see downsides to look for positional holds to 1.74 with the weekly imbalance looking likely again.
This can be a good hedge trade to longs.
However, buys can be engineered by a perceived short position in which we will look long again with 1.767XX to remained untested.
See the main idea here for longs, shorts.
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