the GBP/AUD is building a massive bull flag pattern. The main question whether the pattern will break north as it should or will it fail and reverse?
The GBP/AUD seems to be building a 5 wave (purple) pattern. The current ABC retracement could complete wave 4 (purple) if price is able to stay above the long-term MAs. But the long-term trend on the daily chart is heavily bearish. And hence, any bullish price action could also easily be an ABC (pink) correction instead.
The main decisive factor is the 21 ema zone. A re break above the 21 ema and bull flag channel confirms that breakout (green check). A break below the 21 ema zone, however, could indicate a deeper bearish retracement.
The analysis has been done with SWAT method (simple wave analysis and trading).
For more daily technical and wave analysis and updates, sign-up up to our newsletter.