GBPUSD Elliot Waves Analysis For 18 May 2016 | 18 May 2016

Wave Analysis

GBP/USD is currently trading with a bearish bias. Yesterday, the pair rebounded from the resistance level 1.4480 and is currently headed to the lower side. During this intraday, As long as the pair trades below 1.4480 we still expect further momentum to the lower side. A clear breakout below 1.44061 will lead to an acceleration to the lower side but should not go below 1.4193. This view can only be invalidated should the price rise above 1.4480, if the latter is the case, then we expect a rally to the upper side. This pair should be traded alongside EUR/USD, AUD/USD, and NZD/USD. These pairs have a strong positive correlation of up to +0.92 and will likely have a similar price action during this intraday.

Trade Recommendations:

If you are not short already, wait for a clear breakout below 1.4406, then go short with you targets at 1.4304, and 1.4178. Buy positions are only recommended above 1.4543 with a target at 1.4767.