GBPAUD M15 - Bearish Setup Based on Divergence & Structure Break

📉 GBPAUD M15 - Bearish Setup Based on Divergence & Structure Break 📉

Pair: GBPAUD
Timeframe: 15M
Strategy: Wave Analysis + Supply Zone + AO Divergence + Structure Break

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🔍 Market Overview:

The current price action on GBP/AUD M15 reveals a 5-wave impulsive structure with clear signs of exhaustion at the top. Price recently tapped into a well-defined supply zone (2.08858 - 2.08710), showing bearish divergence on the Awesome Oscillator (AO) between Wave 3 and Wave 5, signaling potential reversal.

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📌 Key Confluences for the Sell Setup:

1️⃣ Supply Zone (2.08858 - 2.08710):
Price has entered a strong area of previous rejection. Watch how price reacts here.

2️⃣ Bearish Divergence (AO):
• AO Histogram shows lower highs while price makes higher highs between Wave 3 and Wave 5.
• This is a classic bearish divergence—a potential early sign of trend reversal or deeper correction.

3️⃣ Break of Structure (2.08658):
A clean break below the minor structure support at 2.08658 will confirm weakness in bullish momentum and open the door for short opportunities.

4️⃣ Entry Confirmation:
• Wait for a clear M15 bearish candle close below 2.08658.
• Ideal confirmation would be a break-retest scenario, or a rejection wick back into the supply zone followed by bearish continuation.

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🔽 Trade Plan (Sell Bias):

Entry Trigger: Break of 2.08658 structure
SL (Stop Loss): Above 2.08858 (Above Supply Zone / Wave 5 high)
TP1: 2.08250 (Recent minor support)
TP2: 2.07800 (Deeper correction area)
TP3: 2.07500 (Previous demand zone)

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⚠️ Risk Management & Notes:
• Risk-reward ratio: Aim for at least 1:2 to 1:3 depending on entry.
• Avoid premature entries before structure is broken.
• Be cautious of news impact around AUD/GBP (as marked on chart).

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📎 Conclusion:
A clean divergence setup has formed near a supply zone, with signs of bullish momentum fading. If structure breaks, this could be a high-probability short setup. Always wait for confirmation and manage risk properly.

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💬 Feel free to like, comment, or share your views below. Good luck and safe trading! 🚀

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