GBP/AUD 08.11.2016 H4 chart.
Continuous downtrend ending with Head and Shoulders formation.
Break above the neckline and test.
Price above diagonal support and Fibonacci 50% of the new upward movement.
Japanese candles signal: Bullish engulfing at levels of support for probable new upward impulse.
CCI(50) crosses above 0 – positive signal
Price test the break of 50SMA and keeps above – positive signal
Alternative scenario: If price goes back below diagonal support and SMA50 this will negate the positive scenario.
Jr. Trader Nikolay Georgiev