GBPAUD – the pair was analyzed by me in details last week. It is now in a correction phase after nearly 5-weeks of decreases. The Head&Shoulders formation is now complete because necklines (I wrote about them in the previous analysis) have been achieved. Currently, the price is already over the first neckline and it seems that this is not the end of the correction. The target of the demand may be the downward trend line (blue) currently distant by approx. 200p. There, the market may decide on the further direction of quotations.
It is worth observing the price behaviour and if on the H4 chart oscillator MACD sets the maximum and its value starts to decrease (a red bar will appear on the histogram) it will be the end of correction according to the PA+MACD strategy and you can consider sell order. It would be good if at the same time there will be an additional confirmation of the coming declines in the form of a candle with a longer upper shadow. However, if the correction does not stop at the trend line and overcomes it, it will signal further growth to at least 1.7870.
