The pound is very weak compared to the Australian dollar, The GBP/AUD pair is declining since March high. We see a clear wave structure without overlaps within that extended form from 2.059 so we think that it is impulsive price action.
Ideally, it is wave 3 that should be structured by five sub-waves. Well, that is not the case yet, as current minor recovery looks like a fourth wave, because of slow and choppy price action. Ideally, the rally will find resistance in upcoming days, maybe already here around 1.8450, or at 1.8600 that can be even better area considering former wave four and 38.2% Fib. level.
That been said, a resumption down into wave five of 3 is what may happen while the GPB/AUD pair trades below 1.900 level.
GBPAUD, daily
(Click on image to enlarge)
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