The forex market is the world’s largest financial trading market that has gained immense popularity in recent years, encouraging many individuals to start investing in this market. If you are a beginner in forex then your plate must be full, learning the forex skills, searching for a reliable forex broker to work with, gathering as much knowledge on how the forex market works, and choosing currency pairs to trade with. However, we must make a point here that GBP/AUD is not a suitable pair for newbies in forex trading.
This pair comprises the British Pound (GBP) of the United Kingdom (UK) and the Australian Dollar of Australia. These two countries have strong economies that make their currencies one of the most traded ones in the forex market with GBP being the fourth most traded currency in the entire forex market, bringing high liquidity to this pair. This is a pair that is highly popular among experienced forex investors that enjoy huge profits due to its major price fluctuations.
4 Tips to trade GBP/AUD pair:
Here are some tips that professional traders use that lets them trade this pair profitably.
- It should be noted that this pair is volatile in nature and shows major price fluctuations which could be hard for beginners to deal with and might end them with losses. What senior players have with them is the experience that has taught them how the market works in general and specifically how this pair behaves. If you understand this pair’s behavior, then it will be easier to trade with it.
- If you want to understand its behavior, you must study the historical data of this currency pair that will help you build a strong insight. Understanding past data for months or years can tell what trends this pair might form in the future.
- Moreover, you must build strong technical analysis skills, learning different techniques and strategies that are specifically made to deal with sudden price changes and volatility. Strategists have shared that this pair acts quite good in support and resistance areas. Its price also repeats the same behavior that provides you with more opportunities to take advantage.
- All experts in the field rightfully say that fundamental analysis and technical analysis should be used hand in hand to become a successful trader. Same is the case with this pair, as its prices are already unpredictable, monitoring the news, economic events, bank reports and import/export rates will make you better prepared to trade with this pair. You must realize what factors affect this pair’s prices and look forward to those factors to make the best out of those conditions.
Trading with GBP/AUD will not be easy, especially for new forex traders as it is one of the unpredictable pairs, however if you have strong analytical skills and know how to take advantage of volatile market behavior then this pair can give you huge profits and easily increase your earnings.