Vladimir Ribakov analyzes GBP/AUD and identifies a sell setup at a supply zone aligned with Fibonacci expansion. He spots bearish divergence on the daily chart, an engulfing candle pattern, and lower lows on the 4-hour chart, with two possible downside scenarios targeting specific zones.
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Hey, hello traders, how are you? Vladimir here from Home Trader Club, and in this video I would like to share with you the technical analysis follow-up and updates on the pound Aussie pair we've been following for the last several weeks. If you missed this video, the original videos where we analyze the whole move up and trading plan Make sure you watch that in the channel. Okay, you will understand the whole analysis and why I was expecting this instrument to come close to this zone before it drops down, before it reaches the zone, reverse, creates the reversal signs, and drops down. Okay, so this is pretty much where we are, and I want to explain the trading plan right at that moment. But before I continue with the charts, a big thanks and shout out to Mogan Markets for supporting me, my channel, and my community. You can learn everything about Mogan Markets with the link below this video, where also you can find the special offer I have thanks to the partnership with them, where you can enjoy your access to my products. So read all the information about this special offer Below this video in the description. So a quick reminder from the last video I made on the follow-up. Again, you can find it on my channel. From this zone, we were anticipating the pound Aussie basically to lose the momentum here, create a pullback ideally towards the next important supportive areas, which it did, and complete the final rally. As per the analysis and the anticipation, our ideal zone where we wanted to see the price coming close to would be this supply area where it also fits with this Fibonacci expansion of these 3 legs. So you can see the market reached very, very, very close to this zone. Creates here a potential reversal sign, which I'll mention in a moment. And I like this situation because at the moment, as you can see, it attempts to break above the weekly massive swing high here, uh, and so far, so far fails to do so. We can start to see some slowdown signs, okay? While the market is trying to make the higher highs, the indicators Basically pointing down, and here is the very interesting part. So the weekly we understood understand what's going on on a daily chart. Okay, besides the long divergence we have here while the market is making a rounding top, the indicator screams bearish divergence. But also what I love here is these candle patterns. Okay, this is a fantastic reversal with an engulfing at the end of the rally. The most recent two candles that made higher. Highs are broken, engulfing, and a verification candle. Absolutely fantastic, uh, technical sign. And on the 4-hour chart, we can see that the market is making lower lows already. Okay, so there are 2 scenarios, um, you— that usually the market, uh, follows in such cases. So first of all, of course, the most recent inner zone before the final push, and the support becomes a resistance, and the previous swing high of the uptrend, right? And the swing highs before the turnaround, that creates for us a fantastic area. So the classical scenario here is the market comes close to one of these areas, starts to create an additional bearish signs with candles showing lower highs, lower lows, and make the push down again to below these lows. Okay, so this would be a classical scenario. But the second scenario that I would be following— it also is an optional thing— is that the market goes here, completes 3 waves down to below this low here Okay, and then pulling back towards this volume zone, maybe even slightly higher, before a deep turnaround to the downside. So if the corrective structure really starts to build itself up at the moment, I would expect to see the, uh, pound Aussie going back to the— these 2 lows. And the volume zone, as you can see here. Okay, this is a classical zone. And if it goes even beyond this level, then the next important level for me here would be the broken resistance that becomes a support here and holds. So this would be the 2 ideal targets for me to look on these sell opportunities. What do you think about the pound Aussie and Do you think the reversal is here? Share with us your thoughts and your inputs in the comment section below this video. Of course, thank you very much in advance. And if you are new to this channel, first of all, welcome to our fantastic community. I hope you find value in this video and the other videos I upload for you and all the trading opportunities I find for the community. If you do, please hit this like button. Few words in the comment section would be a great help. 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