Look for reversal

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Updated: 23 October 2019

GBPAUD has been trading in an ascending channel for the last 2 years and is near the top of the channel currently. Every time it’s hit the top previously we’ve seen a reversal so there’s a good probability price will behave the same this time. A short position with an entry near the top of the channel has a great risk:reward ration and a good probability – set a tight stop loss just above the top of the channel