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GBP/AUD Develops Strong Bearish Wave 3 Momentum

By:
Chris Svorcik
Updated: Jul 21, 2020, 21:37 UTC

GBP/AUD is showing a strong and impressive bearish momentum during the breakout. The downtrend is in full speed and expected to continue lower.

GBP/AUD

In this article:

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

GBP/AUD 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).

GBP/AUD 1 hour chart

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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About the Author

Chris Svorcikcontributor

Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.

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