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GBPUSD Elliot Waves Analysis For 31 May 2016

31 May 2016, GBP/USD

GBPUSD Elliot Waves Analysis For 31 May 2016

Wave Analysis:

GBP/USD is currently trading with a strong bullish bias. Yesterday, the pair traded short as previously forecasted but ended up closing a few pips from our first target 1.4575. Currently, this pair is pretty much bullish and may break above 1.4706, but should not close above 1.4818. In the meantime, we are waiting for a clear breakout above 1.4729 to give us the green light to continue to the upper-side. This view can only be invalided should the price end up rebounding from 1.4729. A rebound from this resistance level will lead to an acceleration to the lower side but should not go below 1.4480. This pair should be traded alongside GBP/CHF, and GBP/JPY. These pairs have a strong positive correlation and will thus have a similar price action during this intraday.

Trade Recommendations:

As long as the the level 1.4706 protects the upper side, expect a possible rebound from this level to go short with your target at 1.4480. A breakout above 1.4729 will mean looking for long positions with an ideal targets at 1.4818.

Graham Osano
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