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GBPAUD Elliott Wave Analysis Trading Lounge Day Chart, 19 January 24

British Pound/ Australian Dollar(GBPAUD) Day 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 Day Chart" dated 19 January 24, provides an in-depth analysis of the British Pound/Australian Dollar (GBPAUD) currency pair using Elliott Wave theory. Elliott Wave analysis is a technical approach that seeks to identify patterns and trends in financial markets based on repetitive wave structures.

The analysis designates the primary "Function" as "Counter Trend," implying that the focus is on identifying potential movements against the prevailing trend. Counter-trend analysis is particularly relevant for traders seeking opportunities during corrective phases or trend reversals.

The declared "Mode" is "Corrective," indicating the expectation of a corrective wave pattern. Corrective waves represent temporary price movements that run counter to the primary trend, often providing traders with opportunities to enter or exit positions strategically.

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

The "Position" is noted as "black wave 2," indicating the current phase within the broader Elliott Wave count. The analysis is centered around the development of the second corrective wave labeled as black wave 2.

Regarding "Direction Next Lower Degrees," the emphasis is on 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 implies the conclusion of the preceding corrective wave, marking the initiation of the ongoing phase, blue wave B of 2.

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

In summary, the GBPAUD Elliott Wave Analysis for the daily 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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