A Look at the Bigger Picture
The GBPAUD pair is presenting a fascinating long-term structure, characterized by clear phases of liquidity hunts and trend shifts. Here's an in-depth breakdown:
Key Zones and Observations:
Historical Expansion
Price has demonstrated a multi-decade bullish structure, with clear wave movements leading into critical highs. The pair reached an apex (marked as (5)) with significant buy-side liquidity swept in the process.
The BOS (Break of Structure) at internal levels suggests prior demand zones being invalidated.
Liquidity Traps
Inducement Zone: A false breakout led to retail trader traps near the highs. This liquidity sweep marked the transition to a corrective phase.
Sell-Side SSL (Stop Loss Level): A key area where sell-side liquidity resides, forming a pivotal zone in the 12M timeframe.
Corrective Wave Movements
After peaking, the pair entered a corrective (W)-(X)-(Y) structure. This phase displays a clear bearish retracement targeting unmitigated liquidity zones below.
Current price hovers around equilibrium levels, with significant attention at the 50% retracement level (1.51960).
Low-Resistance Run (LRR)
The price has efficiently moved through a low-resistance range (LRR), targeting deeper liquidity pools around (1.03333) and 0.65039, highlighting potential continuation zones.
Strategic Implications:
Buyers: While the long-term trend is currently bearish, equilibrium zones and deeply discounted levels provide a potential buying opportunity in line with long-term wave structures.
Sellers: With liquidity beneath unmitigated zones like 1.16097, further downside to test deeper supports around 0.65039 remains plausible.
Future Projection:
As the price approaches the final corrective waves in the broader (W)-(X)-(Y) formation, the focus will shift to the interaction at key demand zones. Long-term reaccumulation is likely as deep liquidity pockets are targeted.
📉 Are you ready to ride the next big GBPAUD move?