GBPUSD Elliot Waves Analysis For 1 July 2016 | 01 Juli 2016

Wave Analysis

GBP/USD is currently trading with a bearish bias. The Cable continues to make lower lows even as Gold and EUR/GBP, maintains a "safe heaven", higher highs status. Following the breakout below 1.3375, we expect further movements to the lower side and may break below 1.31160. Since Euro Dollar is giving a bearish signal at the moment, and the two (Euro and Pound Dollar) are strongly positively correlated, we will remain short in both pairs. These pairs should be traded alongside EUR/JPY, GBP/CHF and GBP/JPY. These pairs have a strong positive correlation of up to +0.91 and will have a similar price action during this intraday.

Trade Recommendations:

Remain short with your ideal target at 1.3116.