Illustrating a Classic Elliott Wave formation

FX:GBPAUD   British Pound/Australian Dollar
The afternoons of trading are times for logging, reflection, and learning. Earlier in the morning my scanner picked up a 10 minute timeframe breakout on the GBPAUD             currency pair. The breakout itself fit my rules for a trade and I took it from 1.7389 down to 1.7288 for a morning 100 pip day trade. I wanted to get a higher level understanding of why this trade worked as well as it did so I zoomed out to the 2 hour timeframe.

When I looked at the price action of the higher timeframe my Elliott Wave training immediately recognized a classic pattern. This yielded a fantastic learning opportunity. I take lots of screenshots to look back on to reinforce what I know and provide reference for future instances. Price action patterns repeat again and again.

What I had caught was a 4 count Wave; the pullback/profit taking following the largest 3 wave. In addition to the 4 wave being easily identified it also fit the rule that the 2 and the 4 wave will have inverse behavior. In this case, the 2 wave was a consolidation and choppy which would suggest that the 4 wave will be quick and sharp. The corollary would be if the 2 wave had been sharp then the 4 would have been choppy. Capturing part of a quick 4 wave is the ideal situation.

Now to see if this pattern completes into a full textbook Elliott Wave we can look for a 5 Count Wave to happen next. Price must respect the 50% retracement where it is hanging around as of writing or the 61.8% and then make a move to retest the high. I would not take it long here as the current price action is breaching the prior consolidation pattern and suggesting it will reach the 61.8%.
Comment: Got to the 61.8, did a shakeout below, now going up to the 5 wave

Completed the 5 wave all the way to 100%
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