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GBPUSD Elliot Waves Analysis For 4 April 2016

04 April 2016, GBP/USD

Wave Analysis:

GBP/USD is currently trading with a bearish bias. The cable broke below the support level 1.4270, and is currently on a pullback rally towards it. The current upward rally is a mere retracement towards this level for us to go short from the zone 1.4270-1.4289. In the meantime, we remain long but only up to the resistant level 1.4270 from where we will look to continue with wave (c) with our target at 1.4059. In an alternative case scenario, should the pullback break above 1.4289, then we will look to buy the pair with our new target at 1.4410. This pair should be traded alongside AUD/USD and NZD/USD. This pairs have a strong positive correlation of up to +0.96 and will likely move in a similar direction during this intraday. Only buy or sell the cable if the other positively correlated pairs are giving the same signal.

Trade Recommendations:
wait for the current retracement to end within the zone 1.4270-1.4289, then sell the pair with you ultimate target at 1.4059, Only buy upon a clear breakout above 1.4289.
Graham Osano
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