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GBPAUD Elliott Wave Analysis Trading Lounge 4 Hour Chart, 19 January 24

British Pound/ Australian Dollar(GBPAUD) 4 Hour Chart

GBPAUD Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Corrective

Structure:likely Zigzag

Position: black wave 2

Direction Next Lower Degrees: blue wave B of 2(started)

Details: blue wave A of 2 looks completed at 1.94192. Now B of wave 2 is in play. Wave Cancel invalid level: 1.85932

The "GBPAUD Elliott Wave Analysis Trading Lounge 4 Hour Chart" dated 19 January 24, offers a detailed analysis of the British Pound/Australian Dollar (GBPAUD) currency pair. The analysis is conducted using Elliott Wave theory, a methodology focused on identifying and interpreting repetitive wave patterns in financial markets.

The declared "Function" of the analysis is "Counter Trend," indicating a primary focus on identifying potential movements contrary to the prevailing trend. This type of analysis is essential for traders looking to capitalize on corrective phases or potential reversals in the market.

The specified "Mode" is "Corrective," suggesting that the current market phase is seen as a correction within the broader context. Corrective waves are characterized by price movements that oppose the primary trend, providing traders with insights into potential temporary interruptions in the market.

The primary "Structure" identified is a "likely Zigzag," which is a specific corrective wave pattern within Elliott Wave theory. Zigzags are characterized by three waves labeled A-B-C and are often part of larger corrective structures.

The "Position" is noted as "black wave 2," signifying the current position within a larger Elliott Wave count. The focus is on the development of the second corrective wave labeled as black wave 2.

Regarding "Direction Next Lower Degrees," the analysis points to the anticipated "blue wave B of 2." This suggests that, following the completion of the current corrective structure (black wave 2), the next lower-degree corrective wave (blue wave B of 2) is expected to unfold.

In the "Details" section, it is highlighted that "blue wave A of 2 looking completed at 1.94192." This suggests the conclusion of the preceding corrective wave, marking the commencement of the ongoing phase, blue wave B of 2.

The "Wave Cancel invalid level" is identified as "1.85932." This level serves as a critical reference point; a breach of this level could invalidate the current wave count, leading traders to reassess their analysis and potentially indicating a shift in the anticipated market direction.

In summary, the GBPAUD Elliott Wave Analysis for the 4-hour chart on 19 January 24, suggests a counter-trend scenario with the ongoing development of a corrective wave (black wave 2). Traders are advised to closely monitor the progress of this corrective move, with attention to the invalidation level at 1.85932.

Technical Analyst: Malik Awais

Source: Tradinglounge.com

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