After bouncing off the .5 fib ext 3 times, GBPAUD
finally dropped over 200 pips early Friday. Hopefully some of you were able to catch the drop. Based on the fact that the 8 EMA
crossed the 34 EMA
already, I expect more downside to continue on this pair. MacD
has also crossed for more bearish
confirmation. It continues to make lower highs and lower lows, and this may push the pair down to the PRZ around the 2.0230 level. Watch the reaction to the price around the 38.2% ext to look for an opportunity to join the downtrend. TP and SL shown on the chart. With its correlated pair AUDUSD
on the verge of a huge Wave C up, this could send this pair even farther down than the target on the chart, to the weekly target of 1.99 level.