GBPAUD Showing Evidence of a Bearish Resumption – Elliott wave analysis
On the weekly chart of GBPAUD we see price sharply declining, down from 2.08 high, after a sideways, choppy movement from October lows of 2016. Also, price is breaking below the lower corrective channel line which is evidence that further weakness may be seen.
Daily chart is showing a clear bearish structure, a five-wave impulse in play, where wave 4 correction is currently unfolding. A wave 4 correction can see resistance and a bearish resumption at the 1.846/1.864 level, where former corrective wave iv can react as resistance. Also, the Fib. Ratio of 23.6 and 38.6 can slow temporary bulls down.
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