GBPUSD Elliot Waves Analysis For 22 April 2016 | 22 April 2016

Wave Analysis:

GBP/USD is currently trading with a bullish bias. Yesterday, wave (4) failed to reach our target at 1.4290, instead, it ended few pips before hitting the support level 1.4290. The current upward rally is the unfolding of wave (5) with an ideal target 1.4640. A clear breakout above 1.4406 will act as a good confirmation to the anticipated upward rally. This pair should be traded alongside, GBP/JPY, NZD/USD and AUD/JPY. These pairs have a strong positive correlation of up to +0.9 and will have a similar price action during this intraday.

Trade Recommendations:

If you are not long already, wait for a clear breakout above 1.4406 to continue long with an ideal target at 1.4640. In an alternative case scenario, if the price ends up closing below 1.4290, then short positions will be ideal for trading with an ideal target at 1.4174.