GBP/AUD has been moving sideways on its 4-hour chart, as it found support at 1.6900 and resistance at 1.7400.
Right now, it is testing the bottom of the range while stochastic is starting to move out of the oversold region. This suggests that a bounce could take place, possibly until the middle of the range around 1.7150.
Data from the UK has been weak though, with manufacturing production falling by 1.1% recently. Meanwhile, jobs data from Australia has been mixed, as hiring was weaker than expected but the jobless rate improved from 5.8% to 5.6% in September.
Going long at 1.6900 with a 100-pip stop and a target at 1.7150 would be a 2.5-to-1 trade then going for the top of the range at 1.7400 would be a 5:1 trade.
By Kate Curtis from Trader’s Way