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GBPUSD Elliot Waves Analysis For 7 April 2016

07 April 2016, GBP/USD

Wave Analysis:

GBP/USD is currently trading with a bearish bias. Yesterday, cable traded short and even tested a key daily support 1.4054. The current upward movement is a corrective rally towards 1.4193 before continuing short. Ideally, as long as the pair trades below 1.4193, we expect a downward rally with our first target at 1.4054. A break below this level will push the price further low to 1.3831. We will only buy upon a clear breakout above 1.4193 with our first target at 1.4289 and the next target at 1.4406. The Cable should be traded alongside NZD/USD and AUD/USD. These pairs have a strong positive correlation of up to +0.95 and will likely have a similar price action during this intraday. Only buy or sell Cable if the other pairs are giving the same signal.

Trade Recommendations:

Wait for retracements towards 1.4178, then sell the pair with you first target at 1.4054, and the next target at 1.3831. Only buy if the retracement goes clearly above 1.4193.

Graham Osano
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