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GBPUSD Elliot Waves Analysis For 31 March 2016

31 March 2016, GBP/USD

Wave Analysis:

GBP/USD is currently trading with a bearish bias. During the previous trading day, the cable traded long as forecasted and even hit out target resistance 1.4410 but could not close above it. Instead, the pair rebounded from this level and is currently heading short. We expect the current downward rally to be the unfolding of corrective three wave cycle with wave (a) ending along 1.4295. We will thus remain short with our target at 1.4295. A break below this level will push the market further down to 1.4196. In an alternative case scenario, should the price end up breaking above 1.4410, then buy the pair with your target at 1.488. The cable should be traded alongside Euro US Dollar. This pairs have a strong positive correlation of up to +0.89 and will likely move in a similar direction during this intraday. Only buy or sell pound if Euro is giving a similar signal

Trade Recommendations:

Remain short with your targets at 1.4295.  A break below this level will call for further short positions with your next target at 1.4196. Only buy if the price clearly breaks above 1.4410.

Graham Osano
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