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GBP/AUD Develops Strong Bearish Wave 3 Momentum

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Chris Svorcik
·1-min read
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The GBP/AUD is showing a strong and impressive bearish momentum during the breakout. The downtrend is in full speed and expected to continue lower. Read this article for the main target.

1 hour chart

The GBP/AUD bears remain in control as long as price stays below the resistance zones (orange boxes). A break above the wizz 4 level would invalidate (red x) the bearish outlook. But a bounce and breakout (green check marks) could confirm it. The current momentum, however, would first require a pullback like a bear flag (green arrows).

The GBP/AUD is expected to respect the 21 ema resistance zone too, if there is a pullback. The main target for the moment is aiming at 1.7750. The current push down could be part of a wave 3 (pink) of a larger wave 5 (purple). Recently price action seems to have completed an ABC (pink) within wave 4 (purple).

Good trading,
Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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This article was originally posted on FX Empire

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