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British Pound in Uptrend Consolidation vs. Aussie

A rather short-lived uptrend on the GBP/AUD daily chart that lasted from January 11 through February 8 has ended in a consolidation pattern known as a symmetrical triangle. The triangle is a continuation formation, which would prompt us to buy the currency pair should the bullish breakout occur.

The image below shows the triangle’s sides marked with the yellow lines. My potential entry level is marked with the cyan line — it is positioned at 10% of the triangle’s base width above the upper border. The take-profit level is marked with the green line and is located at 100% of the same distance. As it is always the case with the bullish setups, I recommend setting your stop-loss to the low of the breakout candle. Should the breakout candle’s body appear mostly above the upper border, the low of the preceding candle can be used for a stop-loss. I use symmetrical triangles only as a trend continuation pattern and will not trade a reversal breakout here. You can click on the chart to see its larger version:

GBP/AUD - Symmetrical Triangle Pattern on Daily Chart as of 2018-03-04

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/AUD pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this symmetrical triangle on the GBP/AUD chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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