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GBPUSD Elliot Waves Analysis For 27 May 2016

27 May 2016, GBP/USD

GBPUSD Elliot Waves Analysis For 27 May 2016

Wave Analysis

GBP/USD is currently trading with a bullish bias. Yesterday, the pair rebounded from the resistance level 1.47068, headed short and is still pretty much bearish. We expect the current upward rally to be a mere upward pullback and should not close above 1.4729, a close above this level will lead to an acceleration towards 1.4818, while a clear rebound from 1.4706-1.4729 will confirm the anticipated momentum to the lower side. This pair should be traded alongside GBP/CHF, and GBP/JPY. These pairs have a strong positive correlation of up to +0.85 and will have a similar price action during this intraday.

Trade Recommendations:

If you are not short already, wait for the current upward rally to rebound clear from 1.4729, then go short with your targets at 1.4480 and 1.4406. Buy positions are only recommended above 1.4729 with an ideal target at 1.4818.

Graham Osano
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