GBPUSD Elliot Waves Analysis For 5 August 2016 | 05 Agustus 2016

Wave Analysis

GBP/USD is currently trading with a slight bullish bias. Unfortunately our SL was hit when the price broke below 1.3280 and even went below 1.3145. The current chart setup and structure conveys a bearish sentiment, which means the current upward rally is a mere retracement and should not go beyond 1.3224 from where we'll be looking for potential low risk sell orders. This pair should be traded alongside GBP/CHF, GBP/JPY, GBP/NZD, and GBP/CAD. These pairs have a strong positive correlation of up to +0.86 and will have a similar price action during this intraday.

Trade Recommendations:

If you are not short already, wait for the current upward pullback to end around 1.3160-1.3221 then go short with an ideal target at 1.2905.