GBPAUD can be headed down after the current Elliott wave consolidation is finished at 1.93-1.95 resistance
We have been talking about GBPAUD pair already back in September, where we mentioned and highlighted a potential bearish reversal that can take place. CLICK HERE
Well, since that update, the pair did not move much, but it broke the trendline support, there fore pair can see further weakness based on two different interpretations from an Elliott wave perspective. So we think that pair stays bears.
As a primary count we are tracking a complex (W)-(X)-(Y) corrective rally in wave 2, where 1.94 – 1.95 resistance can be retested for subwave C of (Y) before strong bears show up again. In that area we see the upper side of a channel and also the 50-61.8% Fib resistance.
On second, also bearish but slightly different count we see a potential bearish Elliott wave triangle corrective pattern in wave (4), which is already at the resistance area here around 1.93, so its the first potential turning point, but to make sure that pattern is completed, we need break of 1.8965 level.
So the bottom line is, is that GBPAUD is bearish as long as it’s below 2.0 invalidation level and it will probably stay in the downtrend once the current correction fully unfolds.
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