Great Britian Pound versus Australian dollar has reached our weekly and monthly resistances according to our analysis published on 28th July. We stated that according to our elliot wave analysis, GBPAUD had completed its impulsive 5 wave bullish structure of higher degree under intraday and weekly time frame, yet we didnt get a closing or a proper stop to the hawkish move for the pair was still in its highest zone - not indicating any signs of taking a pause there i.e 1.8940. So we had to wait for its closing and look for hints as the market takes a reversal for correction. We have our 50% fibb retracement level on weekly chart which can also be taken as a sign of bearish reversal, keep in mind the correction will be made of a higher degree in daily time frame to step out of overbought conditions with RSI trading near 70. So wait as the market makes a bearish corrective wave 'a', will be our first fractal confirmation for executing our selling entries.

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

From current market scenario, GBPAUD had broken our upper trend line in four hourly chart at 1.8940 and leaving our exponential moving averages 8,13,21,50 and 200 below. The breakout was followed by a retest of the aforementioned level with a bullish closing above, clearly stating hawkish sentiments gaining the momentum. There are prominent signs of divergence being formed in four hourly chart while in daily the divergence is already there, but keeping previous 4-6 weeks in view where GBPAUD had reversed divergence twice and made highest highs in daily - there might be some chances of it breaking its previous high as well i.e 1.8940. In case this happens and we get a bullish closing above the aforementioned level, GBPAUD will lead its way to 1.91440. 

GBPAUD

Aug 17 2021