Short term GBPAUD Elliott wave view suggest that the rally to 1.7182 on 9/28 peak ended the intermediate wave (W). Decline from there is unfolding as an impulse Elliott Wave structure with extension. This 5 waves move should end Minor wave A of an Elliott wave zigzag structure structure or a wave C of a FLAT correction from 9/22 peak (1.7165). In either case, after 5 waves move ends, pair should bounce in 3 waves at least as the Elliott Wave Theory suggests. Down from 9/28 peak (1.7182), Minute wave ((i)) ended at 1.7033 low, Minute wave ((ii)) ended at 1.7115 peak, Minute wave ((iii)) ended at 1.6824 and Minute wave ((iv)) ended at 1.6921 today’s peak. Below from there Minute wave ((v)) remains in progress either in wave A of a zigzag pattern or wave C of a flat.
The minimum extension area for Minute wave ((v)) i.e inverse 1.236-1.618% extension comes at 1.6798-1.6760 area, where it can end the 5 waves from the peak. However in case of further weakness, pair could see 1.6771-1.6737 ((v))=((i)) target area as well before ending the 5 waves from 9/28 peak. Afterwards, pair should do a bounce in 3, 7 or 11 swings for the correction of 9/28 peak before more downside is seen provided the pivot at 9/28 peak (1.7182) remains intact. If the bounce turns out to be stronger than expected and breaks the pivot at 9/28 peak then that would suggest 5 wave move down from 1.7182 peak is part of a wave C FLAT from 9/22 peak (1.7165) and in this case, pair will extend higher. We don’t like buying the pair into proposed bounce.
GBPAUD 1 Hour Elliottwave Chart
Keep in mind that the market is dynamic and the view could change in the mean time. Success in trading requires proper risk and money management as well as understanding of Elliott Wave theory, cycle analysis and correlation. We have developed a very good trading strategy that defines entry. Stop loss and take profit levels with high accuracy and allows you to take risk free position, shortly after taking it by protecting your wallet. If you want to learn all about it and become a professional trader, register now for your 14 day Trial.