The GBPAUD daily chart Elliott Wave analysis outlines a counter-trend structure with a corrective price movement, indicating that the current phase is part of a larger correction rather than a continuation of the primary trend. The current structure, navy blue wave 2, exists within the broader corrective gray wave 3, suggesting the currency pair is in a retracement or pause.

With navy blue wave 1 likely completed, the chart now shows the development of navy blue wave 2. This typically retraces some of the previous wave’s movement and precedes a potential rally into navy blue wave 3, which would continue the counter-trend move.

Currently, GBPAUD is experiencing the range-bound behavior typical of wave 2 corrections. The analysis suggests limited downside or sideway moves before the trend resumes. Traders should monitor signs of wave 2 completion, anticipating a breakout into the next wave sequence.

GBP/AUD Elliott Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Orange wave B.

Position: Navy blue wave 2.

Direction next lower degrees: Orange wave C.

Details: Orange wave A appears complete, with orange wave B now active.

The 4-hour GBPAUD chart indicates a counter-trend correction, with the market currently in orange wave B inside a broader navy blue wave 2. This highlights a temporary retracement within the overall corrective structure.

The transition from orange wave A to B signifies a consolidation phase. Orange wave B generally retraces part of wave A’s move. Upon its completion, orange wave C is expected to begin, potentially leading the market further along the counter-trend path.

The technical setup points to ongoing corrective activity, with price action likely to remain choppy or directionless. Traders should look for completion patterns in orange wave B, which would precede a likely move into orange wave C and possibly re-establish directional bias.

GBP/AUD Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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