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GBPUSD Elliot Waves Analysis For 14 April 2016

14 April 2016, GBP/USD

Wave Analysis:

GBPUSD is currently trading with a bearish bias. Yesterday, the pair traded short as previous forecasted and even went below the support level 1.4179. Following this breakout, we expect the price to continue accelerating towards 1.4063. In the meantime, we wait for upward pullbacks towards 1.4179 to give us a low risk sell opportunity. We will therefore sit on the sidelines and wait for price to rebound from either 1.4179 or 1.4194 to go short with our ideal target at 1.4063. A break below 1.4046 will push the price further to the lower side. In an alternative case scenario, should the anticipated pullback go beyond 1.4194, then we expect further movements to the upper side. The Cable should be traded alongside GBP/JPY, AUD/USD and NZD/USD. These pairs have a strong high positive correlation of up to +0.8 and are thus expected to move in a similar direction during this intraday.

Trade Recommendations:

If you are not short already, wait for minor upward pullbacks towards 1.4179 to go short with our target at 1.4063. Only buy if the anticipated pullback goes clearly above 1.4194

Graham Osano
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