GBPAUD Bears Set To Overtake After 4 Years of Correction.

GBPAUD is bearish against the decline that started in August 2015. The decline can be seen as a five-wave Elliot Wave impulse structure, labeled 1-2-3-4-5.

According to Elliot Wave theory, a three-wave correction follows every impulse move.

In GBPAUD's case, since the completion of the decline in 2016, it has been a tug-of-war between the bulls and bears in the corrective phase. The correction is a complex one which is labeled as W-X-Y-X-Z double three corrections.

Once the correction is completed the primary trend resumes.

If this count is correct the correction is completed and we have a 5-3 wave cycle. We should see a massive decline in wave (C) to complete the Zigzag pattern, target below wave (A) low is plausible.

Further Confluence

Rejection from 61.8 Fib
Rejection of monthly 200 EMA not on the chart
Multiple rejections from the upper trend line
A perfect flag pattern



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