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GBPUSD Elliot Waves Analysis For 4 May 2016

04 May 2016, GBP/USD

GBPUSD Elliot Waves Analysis For 4 May 2016

Wave Analysis:

GBP/USD is currently trading with a bearish bias. Yesterday, instead of going long as previously forecasted, the pair broke below 1.4640-1.46637, and even closed below the red supportive trend line. Following this breakout to the lower side, we are very reluctant to long, instead, we are waiting for a minor pullback to the just crossed supportive trend line to give us a low risk sell opportunities. This view can only be invalidated should the price end up breaking above 1.46637. A breakout above this resistance level will lead to an acceleration to the upper side. This pair should be traded alongside EUR/USD and EUR/GBP. Ideally, as long as EUR/USD and GBP/USD Move strongly in the same direction, expect EUR/GBP to move in an exact opposite direction. The cable and Euro are strongly negative correlated to EUR/GBP.

Trade Recommendations:

If you are not short already, wait for a minor retracements to the just crossed red trend line to go short with your first target at 1.4473, a breakout below this level will push the price further to the lower side with next target at 1.44061. Only buy upon a clear breakout above 1.46637.

Graham Osano
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