The decline to 1.95991 completed wave X. From this level, the GBPAUD rallied in wave (w) in the form of a double correction w-x-y where wave w ended at 2.004, wave x ended at 1.9822, and wave y of (w) takes the form of a FLAT and ended at 2.0128. The pair then pulled back in wave (x), which ended at 1.984.
As far as 1.984 level holds, or more importantly as far as 1.96 level holds, the GBPAUD is expected to resume its rally to a new high. If 1.984 fails, then the pair is doing a double correction and open extension lower towards 1.975 – 1.9818 area before the rally resumes. In the event that the pair breaks below 1.984, then as far as 1.96 pivot is intact, buyers are expected to appear from 1.975 – 1.9818 area and take the pair either to new high or at least 3 waves bounce per Elliott wave hedging idea.
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