My analysis above clearly shows that as of 8pm GMT on Sunday 12th November 2017:
- GBP is the 2nd strongest currency in the market
- AUD is the 3rd weakest currency in the market.
Let’s pull up the GBP/AUD chart and see what it has to offer.
Start of week 46 – chart and written trade rational:
Rational: GBP/AUD Long (Strong 2 Vs Weak 3 )
I bring this chart to the table as we have an interesting intersection of 2 meaningful trend lines here and, as usual, a strong price reaction upon breakout.
This is the power of our Strength / Weakness analysis; it brings about an awareness of specific chart action that otherwise may remain hidden in amongst the noise of the market.
End of week 46 – chart and trade outcome:
Outcome: GBP/AUD Long
The market opened @ 1.7213 and closed 262 pips higher @ 1.7475.
By following my Strength / Weakness Analysis I was able to take a very healthy + 217 pips of profit from this pair through holding my position in line with my analysis throughout the week.