Preferred Elliott wave view suggests “W” ended at 1.9680 after which we saw a running FLAT (3-3-5) Elliott wave correction down to 1.9420. Read more about 3 types of FLATs here Pair has traded into 100% ext of wave w-x up from 1.9420 low and looks like lesser degree wave (w) has ended at 1.9820. A pull back in wave (x) is now expected which would unfold in 3, 7 or 11 swings and could reach as low as 50 – 61.8 fib area between 1.9620 – 1.9572 before rally resumes. Green arrow indicates the trend is up and pull back is shown with a dotted line which means we don’t like selling the pair & expect it to find buyers in the dip in 3, 7 or 11 swings as far as pivot at 1.9420 low remains intact in 1st degree.

GBPAUD

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