EW Analysis: GBPAUD In The Corrective Phase
Updated
Hello traders!
GBPAUD is clearly bearish, as we see a sharp fall in impulsive price activity down from 2.085 high. We are tracking a so-called impulse, a move that is structured by five waves, where two of them are corrections. Now, we are tracking a wave 4 correction which started at 1.768 level, and it can climb a little higher as corrections are made by three waves a-b-c, before pair can look for strong resistance and a bearish resumption into a wave 5.
"A wave 4 correction can unfold as a simple zig-zag, which seems to be the best possible scenario, unless it turns out to be a flat, a triangle, or a more complex w-x-y move."
Resistance for a wave 4 correction can be at Fib. Ratio of 38.2 that comes in at 1.88/1.90 level, so watch that area as a potential resistance, especially around the previous wave "i" swing low a lesser degree. As such, there is room for slightly more upside before downtrend may resume.
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Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
GBPAUD is clearly bearish, as we see a sharp fall in impulsive price activity down from 2.085 high. We are tracking a so-called impulse, a move that is structured by five waves, where two of them are corrections. Now, we are tracking a wave 4 correction which started at 1.768 level, and it can climb a little higher as corrections are made by three waves a-b-c, before pair can look for strong resistance and a bearish resumption into a wave 5.
"A wave 4 correction can unfold as a simple zig-zag, which seems to be the best possible scenario, unless it turns out to be a flat, a triangle, or a more complex w-x-y move."
Resistance for a wave 4 correction can be at Fib. Ratio of 38.2 that comes in at 1.88/1.90 level, so watch that area as a potential resistance, especially around the previous wave "i" swing low a lesser degree. As such, there is room for slightly more upside before downtrend may resume.
Be humble and trade smart!
If you like what we do, then please like and share our idea!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Note
On 4h chart of GBPAUD, we see price approaching potential support at 1.806 level, provided form a former swing high. Also fib. ratios of 50.0 and 61.8 (1.806/1.80 level) can react as support, and push price into a higher degree wave c.
Note
GBPAUD looks to have completed its corrective wave 4 at 1.84 level, as price started sharply declining. Wave 5 now eyeing potential 1.73/1.72 area.
In case wave 4 is still underway, new rally may be seen towards 1.84/1.87 level.
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