Elliott Wave analysis: GBPAUD In A Corrective Phase

Hello traders!

GBPAUD is clearly bearish, as we see a sharp fall 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: 2 and 4. Now, we are tracking a wave 4 correction which started at 1.768 level, and which can climb higher as corrections are made by three waves, a-b-c, before pair may look for 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 in our case, 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 level, so watch that area as a potential turning point.

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Be humble and trade smart!

GBPAUD, daily

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