GBP and AUD update

The declining green channel which I showed in my previous post is still in charge. The consolidation is happening with positive divergence on the RSI. There is a good chance of a rise around 1.53 area to neutralise that oversold condition. If it touches the next upper resistance, i.e. the second green line from the top, it is a good place to go short. The ultimate target of this very wide green channel is 1.40-1.42 area depending on how the waves unwind going down the way.

On AUDUSD, the triangle I showed in my previous post was not a triangle. I do not consider it as a triangle because there wasn't any support on the third hit. A third hit & bounce is a must to consider the lines as channels, supports and resistances. My anticipation of a bounce from here due to the large blue channel is still there, much reduced due to the triangle failure though. Of course I do not expect to hit the blue channel's upper band but a strong rally wouldn't be surprising from here.

Short term, AUD is in a very steep declining green channel and looks quite oversold. Unless the channel breaks upwards, the decline may accelerate which would dash my rally hopes completely. Hope it helps.