GBPAUD May Continue Lower After a Recovery – Elliott wave Update
GBPAUD is in a downtrend, as we see a sharp fall in impulsive price activity 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: waves 2 and 4. Now, we are tracking a wave 4 consolidation that started at 1.768 level, and which can recover higher, as corrections are usually made by three legs, before pair may look for resistance and a bearish resumption into a wave 5.
“A wave 4 correction can unfold as a zig-zag, a flat, a triangle, or a more complex w-x-y pattern.”
Resistance for a wave 4 correction in our case can be at Fib. Ratio of 23.6/38.2 that comes in at 1.84/1.88 level so watch that area as a potential reversal zone.
Below you have a chart of GBPAUD and an example of an impulse in bearish trend.
Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.
Find more: Contributing Author