British Pound / Australian Dollar (GBPAUD) Elliott Wave Analysis – TradingLounge Daily Chart
GBPAUD Elliott Wave Technical Analysis
Function: Counter-Trend
Mode: Corrective
Structure: Orange Wave 2
Position: Navy Blue Wave 3
Next Higher Degree Direction: Orange Wave 3
Wave Cancel Invalid Level: 1.96381
The daily Elliott Wave chart for GBPAUD presents a corrective move within a broader bullish structure. Currently, orange wave 2 is forming, acting as a pullback within the larger navy blue wave 3 trend. This correction is unfolding after the completion of orange wave 1.
The development of orange wave 2 suggests a temporary retracement phase, signaling potential for a continuation upward with the anticipated orange wave 3 once the pullback concludes.
Key Level to Watch
- Invalidation Level: 1.96381
A break above 1.96381 would invalidate the current wave count and necessitate a fresh Elliott Wave analysis of GBPAUD.
This analysis provides traders with a clear understanding of the short-term correction within a long-term uptrend. Monitoring how orange wave 2 unfolds is crucial, as it’s expected to set the stage for a new bullish phase.
Traders should look for classic corrective structures, including ABC patterns or sideways consolidations, which are common during such wave phases. Understanding the relationship between wave degrees will improve strategy alignment with the broader Elliott Wave trend.
Trading Insight
During this correction, traders may find opportunities by observing market action near the invalidation level. It’s essential to stay aligned with the broader bullish context while remaining cautious in the short term.
British Pound / Australian Dollar (GBPAUD) Elliott Wave Analysis – TradingLounge 4-Hour Chart
GBPAUD Elliott Wave Technical Analysis
Function: Counter-Trend
Mode: Corrective
Structure: Orange Wave 2
Position: Navy Blue Wave 3
Next Higher Degree Direction: Orange Wave 3
Wave Cancel Invalid Level: 1.96381
The 4-hour Elliott Wave chart for GBPAUD shows a developing corrective pattern within a strong upward trend. The focus remains on orange wave 2, currently in progress after the completion of a strong orange wave 1 impulse.
This correction is considered a short-term retracement before the continuation of the uptrend in the form of orange wave 3. Price behavior around the invalidation level will be crucial in confirming the current wave count.
Key Level to Monitor
- Invalidation Level: 1.96381
If GBPAUD moves above this level, it would invalidate the current wave scenario and call for an updated Elliott Wave assessment.
The chart reflects a temporary corrective phase within a larger bullish movement. Traders should look out for familiar corrective formations, such as three-wave structures or sideways price action, that usually indicate a continuation of the main trend.
Trading Insight
This setup provides traders with actionable insights for identifying potential buy opportunities after the corrective wave concludes. The 4-hour chart is especially useful for refining short-term entries and exits. Close monitoring of the invalidation point is advised for proper risk control.
Technical Analyst: Malik Awais
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