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GBPUSD Elliot Waves Analysis For 16 August 2016

16 August 2016, GBP/USD

GBPUSD Elliot Waves Analysis For 16 August 2016

Wave Analysis

GBP/USD is currently trading with a bullish bias. Yesterday, the pair traded perfectly short as previously forecasted and even hit our target support level 1.2871. As long as the pair trades within the falling channel and also below 1.2871 we expect a possible bearish price rally towards 1.27200 or even lower. Any persistence above 1.2871 may lead to a possible upward momentum towards 1.2997. This pair should be traded alongside GBP/JPY, GBP/CHF, GBP/CAD, GBP/NZD and GBP/AUD. These pairs have a strong positive correlation of up to +0.93 and will have a similar price action during this intraday.

Trade Recommendations:

In the meantime, remain long but only up to the upper trend line. A clear breakout above this trend line may call for further long positions towards 1.2997 or even higher. Sell positions are only recommended upon a clear rebound from the upper trend line or below 1.2871 with an ideal target at 1.27200.

Graham Osano
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