GBPAUD test of range

I received a comment (my apologies for late reply didn't see the original post as awaiting moderation) about break and test of range and test of range. Is test of range as good a signal as break and test.

My comment yesterday 5 May 2015, see http://vantagefx.blogspot.com/2015/02/london-open-27-feb-15.html was "All I can suggest is to be aware and watch out for it. But remember you are looking for all the elements i.e. a failed move in a direction, clean move to other end of range, small retrace and then finally some agreement from other pairs for confirmation of strength/weakness. For example gbp weakness in the above post. Putting all together does give a strong signal."

This morning GBPAUD we have a failed move up around London open with multiple tops, a clean move to the lower range (red line), small retrace and agreement from other GBP pairs (below their moving averages and giving lower highs) showing GBP general weakness. As mentioned several times I like the correlation GBPAUD and GBPNZD when they are agreeing on direction.

EURAUD 168 pips

Last week was not good but at least no losing trades, we had 2 exits at break even when take profit levels were not reached and the market turned.

Exited this euraud buy at +168 pips.

2 trades 335 pips gbpaud and euraud

2 trades closed this week. The gbpaud entry was a little early, the bounce coming a little lower from the W pivot W M2 exit for +204. Euraud exit for +131.

Trade of the week gbpaud 261 pips

Price came into an identified support and resistance area from February 2015, if you look at a monthly chart you'll see how important the area was through the years. Price hesitated at W M3 with divergence showing on 4hr. Exited at the daily low from 6 Mar and 3 Apr '15 for 261 pips.

Another week another 284 pips trade

Bought a higher low from lower time frame but it was a little early and the bounce came from the W M0 pivot just below our entry. As often mentioned the aud pairs seem to love the W pivots. Exited again for +284 before the weekend and we are also away Monday/Tuesday next week.

Trade of the week 284 pips

Price came into a resistance level identified by the D chart and W R1. We sold a lower time frame lower high and exited at a potential support level for +284.

London open 4 March '15

Same set ups that occur frequently.

5 minute charts - the eur pairs fail to follow through on their moves up. Prices fall from the top of their ranges with clean AB moves below the 20lwma's testing the lows of range, small BC retraces to form the lower highs. As confirmation there is agreement across pairs so we are confident that the eur was generally weak.

The GBP pairs follow some time later after London open.