Weekly time-frame chart of GBP/AUD demonstrates the following:
1. Previous upward move 1.45 - 2.20 has a three wave structure, i.e. a corrective by nature
2. Downward move from 2.20 top has an obvious motive wave characteristics with waves 1, 2 and 3 completed and
3. It seems the expanded triangle of the wave 4 is completed as well by this time
4. MACD demonstrates nice divergence with the price and looks very heavy and ready to drop soon.
5. Volume supports sell ides since the largest 3 out of 5 last bars are red.
6. Since wave 4 should not touch wave 1 (btw in forex this rule can be bend a little bit) the invalidation level is set to 1.84, where your stop should be placed
7. Ultimate target is 1.33 - 1.50 levels, but I would prefer more conservative exit at around 1.52 right above a significant support level.
1. Previous upward move 1.45 - 2.20 has a three wave structure, i.e. a corrective by nature
2. Downward move from 2.20 top has an obvious motive wave characteristics with waves 1, 2 and 3 completed and
3. It seems the expanded triangle of the wave 4 is completed as well by this time
4. MACD demonstrates nice divergence with the price and looks very heavy and ready to drop soon.
5. Volume supports sell ides since the largest 3 out of 5 last bars are red.
6. Since wave 4 should not touch wave 1 (btw in forex this rule can be bend a little bit) the invalidation level is set to 1.84, where your stop should be placed
7. Ultimate target is 1.33 - 1.50 levels, but I would prefer more conservative exit at around 1.52 right above a significant support level.