GBPUSD Elliot Waves Analysis For 17 May 2016 | 17 May 2016

Wave Analysis

GBP/USD is currently trading with a bullish bias. Yesterday, the pair traded long and even broke above 1.44061 but could not close above 1.4480. During this intraday, we are waiting for a clear breakout above this level to signal the continuation of the upward rally, or a clear rebound from 1.4480 will lead to an acceleration to the lower side. The latter is highly anticipated since the intraday stochastic is already trading above it's overbought level of 80 and will likely begin to retreat to the lower side. This pair should be traded alongside, EUR/USD, NZD/USD, AUD/USD, EUR/JPY and GOLD. These pairs and commodity have a strong positive correlation and will likely have a similar price action during this intraday.

Trade Recommendations:

Remain flat for now and wait for a clear breakout above 1.4480, then go long with you targets at 1.4543 and the next target at 1.46637. A clear rebound from 1.4480 will call for short positions with an ideal target at 1.4106.