Great Britian Pound versus Australian Dollar has been moving in the direction as published and anticipated in our previous analysis on 4th Oct - expecting the market to fall lower because of failing to break above our upper trend line and 1.8980 strong resistance. In the daily time frame we can observe that GBPAUD has taken a bearish exit from the ichimoku cloud after cutting out of the Senkou Span B and also managing to lose its edge over holding above 61.8% fibo retracement level. The exponential moving average 50 on the daily chart has also taken the position of a resistance to the pair at 1.8717 while targeting exponential moving average 200 in the daily time frame as its next destination. According to elliot wave pattern on the daily chart, the pair doesnt seem to be providing any impulsive runs but a slowly consolidative movementn which is pointing at a bullish reversal any time soon. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

In the four hourly time frame the pair has been creating some strong swings towards the upper trend line after every breakout on the interday charts i.e 1.8720 and proceeded by 1.8625. In accordance to the elliot wave pattern and the swing breakouts, the pair seems to be in the 5th bearish wave of minor degree and the last move might result in a touch down at 1.8430. The exponential moving average 200 in the daily time frame is expected to become a strong point of bullish reversal where the Pound bulls might take over and make attempts on breaking out of our upper trend line. In case the pair broke below 1.8430 - 1.8400, we can consider the pair entering into bearish rally of higher degree with targeted destination at 1.8282 and 1.8090.  

GBPAUD

Oct 11 2021