# GBP/AUD Neckline Retest (February 14, 2014)

Source: https://www.tradersway.com/resources/market-info/gbp-aud-neckline-retest-february-14-2014/
Language: en
Updated: 2014-02-14

After that hawkish BOE inflation report, GBP/AUD made a strong break above the neckline of the double bottom pattern earlier this week. However, after finding resistance at the 1.8600 handle, the pair looks ready to make a quick pullback before resuming its climb.



On the 1-hour time frame, the neckline and former resistance is between the 38.2% and 50% Fibonacci retracement levels. Stochastic is making its way out of the oversold zone, which means that pound bulls are ready to push the pair back up.



![GBP/AUD Neckline Retest (February 14, 2014)]



Going long at the 38.2% Fib with a stop below the 50% Fib level and a target around 1.8600 could yield at least a 2:1 return on risk.



*By Kate Curtis from Trader’s Way*