in my last GBP/AUD article we mentioned that this currency pair was developing a bearish impulsive, most likely a wave 3… The bearish momentum indeed took place and today we will make an update for this pair as I think that price has completed the wave 3 and is building a wave 4 correction.
We will review different scenarios as the pair can either bounce for bearish correction or expand the bullish momentum within wave 4.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.
As the below chart shows, the pair started to developed a bearish momentum… In my view, the pair seems to have developed 3 waves and price is now in a potential wave 4 and near to start potential wave 5. If that is indeed true, then we expect more downside soon. I expect the price to test a critical -27.2% Fibonacci level which is the main target for a wave 5 and a bounce from that spot could confirm the start of a corrective wave A.
For the moment I expect a bearish move for wave 5… in the next paragraph, we will discuss this development by using SWAT software.
Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… and here are the main conclusion:
So in my view, traders should wait for the confirmation before trading this pair and look for sell opportunity only as it matches the expected wave.
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