How to trade GBP/AUD profitably?

How to trade GBP/AUD profitably?

One should know, in the forex market, not every currency pair will give you the same trading conditions. All currency pairs have different behaviors, liquidity, and trading opportunities, some give profitable opportunities more frequently as compared to others. This is the reason, currency pairs are divided into types, major, minor/crosses, and exotics, that represent their trading volume and how frequently they are traded.

GBP/AUD belongs to the minor/crosses type of currency pair, which means that it includes two of the major currencies, the British Pound and Australian Dollar. However, as it is a minor pair it has less liquidity as compared to major pairs that involve the US dollar in every pair. Still, this pair is renowned and popular among professional forex pairs. The reasons could be that it provides good profits if traded correctly and investors that want to diversify their portfolio choose this pair quite frequently.

Now, you must be wondering what is the correct way to trade this pair? Or if this pair is highly volatile then how can it be profitable? Do not worry, we are going to discuss exactly that today.

Volatility: This pair is volatile in nature that might be risky for new traders but for an experienced one this could be an opportunity to make huge profits. Experts apply multiple techniques and strategies that are useful for volatile market conditions. If one can predict the direction of prices in these situations correctly, then one can make the most out of that situation.

Technical Analysis: One of the strongest tools of a forex trader is good technical analysis. For this pair, it might be a little tricky and difficult to learn as it is unpredictable, but still, there are indicators, patterns, trends, and alerts that help you make better decisions when it comes to GBP/AUD. For example, this pair gives good price reversal opportunities in the support and resistance zones.

Fundamental Analysis: For any currency pair, fundamental analysis cannot be neglected. Similarly, one should be updated with all news, events, and reports related to these currencies as they make you better prepared for how this currency pair might act after a piece of news.

Market Behavior: Since it is an unpredictable currency pair with sharp price movements you need to learn how it behaves in live sessions and be prepared to make on-the-spot decisions. Studying historical data can help you give an insight into future trends and behaviors of this pair.

It is a strong pair despite its unpredictable behavior. Once you learn the technique to trade with this pair, it can be a great addition to your trading portfolio. Although we would not advise new forex traders to start trading with GBP/AUD if they have no trading experience and no market understanding, in that case, it will be risky.

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