GBPUSD Elliot Waves Analysis For 3 May 2016 | 03 May 2016

Wave Analysis:

GBP/USD is currently trading with a bullish bias. Yesterday, the pair broke above a key resistance zone 1.4640-1.4663 and is still pretty much bullish. Although we expect further acceleration to the upper side, we are waiting for minor downward pullbacks to the just broken zone to give us a low risk buy opportunity. In an alternative case scenario, should the anticipated pullback close below 1.4640, then short positions will be ideal for trading. During this intraday, key levels are seen at 1.4062, 1.4178. 1.4289, 1.44061, 1.44061, 1.46637, and 1.4818. This pair should be traded alongside EUR/USD, EUR/JPY, NZD/USD and EUR/CHF. These pairs have a strong positive correlation of up to +0.87 and will likely have a similar price action during this intraday. Only buy or sell The cable if the other pairs are giving the same signal.

Trade Recommendations:

If you are not long already, wait for minor downward pullback towards 1.4640 to go long with your target at 1.4818. Only sell if the anticipated pullback breakout below 1.4640, the sell position should have a target at 1.4473.