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GBPUSD Elliot Waves Analysis For 20 May 2016

20 May 2016, GBP/USD

Wave Analysis

GBP/USD is currently trading with a bearish bias. Yesterday, the pair retraced as previously forecasted but did not reach our target 1.4543. As long as the level 1.4543 protects the lower side, we expect an upward momentum but should not go above 1.4706-1.4729. Ideally, we anticipate a possible rebound from the level 1.4706 or a break below 1.4543 to go short . In an alternative case scenario, should the pair break above 1.4729, then we expect an acceleration to the upper side. This pair should be traded alongside GBP/JPY, GBP/HKD and GBP/CHF. These pairs have a strong positive correlation of up to +0.89 and will have a similar price action during this intraday.

Trade Recommendations:

As long as the level 1.4543 protects the lower side, remain long with your target at 1.47068. A clear breakout above 1.4729 will call for further long positions with an ultimate target at 1.4818. Sell positions are only recommended upon a clear rebound from 1.4706-1.4729 or below 1.4543

Graham Osano
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